The Loopring price is bouncing back. The LRC token has risen to $2.80, which is about 18% above the lowest level this week. It has jumped by more than 660% this week, making it one of the best performing cryptocurrencies in the world.
What is LRC?
Loopring is a layer-2 platform that simply allows people to buy and sell cryptocurrencies in a decentralized manner. It is a zkRollup platform that optimizes Ethereum’s network. Zk in this case stands for zero-knowledge. zK rollups enables Loopring exchanges to complete computations elsewhere.
The idea behind it is simple. Today, many of the most active decentralized exchanges are built using Ethereum’s network. And Ethereum is widely known for its slow speed and relatively higher costs. Therefore, traders who use Loopring are able to get better execution in its platform.
While the Loopring idea is a good one, it faces key challenges ahead. The most important one is competition among both centralized and decentralized companies.
Most decentralized platforms like Uniswap and SushiSwap have created bridges that enable people to gain the advantage of faster speeds. Another challenge is that there are simply too many trading venues in the market today. They include centralized platforms like Coinbase and decentralized ones like Uniswap and PancakeSwap.
Loopring price prediction
The chart below shows that two important patterns have formed. First, we see that the LRC price has formed a bullish flag pattern that is shown in green. This pattern is usually a sign that the price will bounce back.