- Loopring’s native token witnessed an exponential rise in demand.
- The LRC/USDT token pair soared to a new all-time high as a result.
- Stratospheric transaction fees on Ethereum driving LRC buying demand.
- LRC could also rally much higher due to the potential partnership with GameStop
JAIPUR (CoinChapter.com) – Loopring’s native token LRC staged a 40% rally as bullish daytraders bet on the layer two protocol’s long-term potential amid rising Ethereum gas fees. The LRC/USDT pair was already trending up since November 7. And extensive long bids in the last 24 hours pumped the pair from $2 to $3.14.
LRC attained its last high at $2.5 on November 8, but the rally ran out of steam due to an immediate selloff. Nonetheless, bulls assumed charge again in the morning London session on Tuesday.
What Is Loopring?
Loopring is a platform for building scalable decentralized exchanges (DEXs) on Ethereum. The development team describes it as an open-source, audited, and non-custodial exchange protocol. The protocol leverages zero-knowledge proofs (zkRollups) to allow anyone to build non-custodial, order book-based exchanges on Ethereum.
Key features of such DEXs would be high-performance trading (high throughput, low settlement cost) without sacrificing Ethereum-level security guarantees. Also, the team claims that users can always maintain cent percent control of their crypto assets throughout all their trading sessions.
What Prompted LRC To Pop?
Gas fees on Ethereum have risen exponentially since June 2021, triggering an exodus amongst users to layer two protocols and layer one alternatives like Solana, Avalanche, etc. As a result, NFT transactions on the largest smart contract blockchain especially have become expensive.
“My NFT journey: Bought ETH, sent it to an @opensea compatible wallet.
Tried to bid but couldn’t, paid $20 to convert the ETH to WETH so that I could bid.
Paid another $15 to approve a spend limit.
Bid on an NFT, waited weeks with no response.
Will cost $50 to cancel bid.”said Jameson Lopp, co-founder and CTO, Casa
Loopring recently experienced an explosive surge in demand compared to its counterparts due to drop dead costs to process transactions.
Besides facilitating cheap transactions, Loopring developers also stoked a potential partnership with Gamestop in their source code. The team revealed that the tentative launch of a GameStop NFT marketplace would happen in Q4 2021.
“Loopring’s public GitHub repository has leaked code confirming GameStop’s highly speculated partnership with the Ethereum Layer 2 protocol. Loopring has disclosed a Q4 2021 launch and the partnership is keen on disrupting the $150B gaming industry.”independent GameStop investment researcher GMEdd.com announced in October end
LRC/USDT Technical Setup
LRC prices shot through the roof into the overbought territory, indicating that sellers will show up soon to book profits off the near-vertical rally. As a result, the relative strength index (RSI) touched 92 on the daily chart and stood to be corrected if LRC/USDT prices dip down.
A strong selloff could push down prices to $2 (61.8% Fibonacci retracement support).
After that, however, bulls would be ready to pick up on all dips and propel the LRC/USDT pair to new highs. Post the latest high, $5.34 serves as the next upside target. But the ascent to the said price will follow only after a brief bout of correction and consolidation.