The crypto market provides one fascinating way to invest and recoup massive profits at short intervals. This is because of the accumulation of exciting projects lining the space where users can tap from. However, the market has been going through turmoil in the last few weeks. This has prompted most traders to take their money out of the market while others save their money in fiat currencies on exchanges. However, the best time to invest in most projects is when the market is down. This will help traders recoup more than enough profits when the market eventually goes up. In this article, we will be looking at the Loopring project, which just made a 20% jump, to determine if it is primed for a major bullish run in the coming days.
What is Loopring?
The Loopring project is focused on providing traders with easier and faster methods of carrying out transactions or making payments on Ethereum. The platform enables these features without invalidating security. One can argue that Loopring is a platform built to help develop Ethereum-based decentralized exchanges using order books. The platform allows traders to make transactions using a set market price without holding their funds. It is starkly different from how a centralized exchange works, where the platform takes the funds from the seller before it is credited to the buyer. Loopring is built on Ethereum, making it a Layer 2 scaling solution. Although Layer 2 platforms seek to provide faster and cheaper services, they conform to the security of the Layer 1 protocol.
How Does Loopring Work?
Projects like Loopring are Layer 2 solutions that offer to help hands to Ethereum in a bid to solve issues related to bulky transactions. These large-scale transactions cause congestion, which drives up the price of transactions and pushes people out of the network. In order to achieve its aim, Loopring ensures that transactions are carried out on a separate chain from Layer 1, which is Ethereum. It uses the zkRollups as a tool that adds transactions into batches, enabling it to carry out the transactions faster. A typical example is choosing to take a bus where commuters pay a cheap fee instead of each person taking an individual cab. The zkRollups is a technology that ensures trust-based information without revealing the details of the transactions.
What Makes Loopring Unique?
The Loopring project provides users with the basic feel of both centralized and decentralized exchanges. The zkRollups mentioned above ensure that transactions are carried out at a lower rate with the throughput higher than most DEX on the chain. It also has a non-custodial technology that provides stronger security than most centralized exchanges. Loopring also supports high-level performance, allowing users to adopt whatever kind of trading strategy they wish to. The platform also has a technology that eliminates cheating via price changes. Asides from those, the platform has undergone audits with no reliance on external validators outside the platform. This means that only users have access to their funds on the platform. The platform also provides users with a digital receipt of all funds sent and withdrawn from the platform. This way, users will be able to get their funds back should the platform suffer a tragic loss.
What Is LRC?
LRC is the native digital asset of the Loopring platform. The token entered the market through an ICO conducted in 2017. At the ICO, the company raised funds above $45 million. This fund, which was all in Ethereum, was pushed towards creating the protocol and the improvement of most functions. The LRC token is an Ethereum-based token used for payments and other activities across the platform. Besides that, it is used as a reward to operators for keeping the side chain active. Another usefulness of the token is for staking on the platform. The platform sends about 70% of the commission to the staking pools as users can only get rewards provided they have a share in the pool for 90 days.
LRC Future Price Analysis
The Loopring token has been performing fairly well amidst the general decline witnessed in the market over the last few weeks. The token posted a massive 20% raise across the last seven days to push for a claim back to the top. However, the token has been in a bearish position in the last 24 hours, losing about 0.5% of its value to trade at $0.50. The token has a trading volume of $209,010,312 and a market cap of $741,311,084. While it looks like the token is one to follow the market trend every time, LRC has shown that it has potential in the market. According to analysts, the token is projected to reach a maximum price of $1.31. However, should the token undergo a bearish turn, it would trade at $1.114 to end the year.
In 2023, the token is expected to touch close to $1.36 on average. While a surge could see it trade at $1.54, it could also sell at a minimum price of $1.23 to close out the year. In 2024, the token is expected to grow to as much as $1.54, with a minimum price of $1.30. The average predicted price of the token in 2024 is set at $1.34. 2025 could signal the big break that investors would need as the token has been predicted to trade at a maximum and minimum price of $2.08 and $1.61, respectively. The token is also expected to trade at an average of $1.86 to close out the year.
Why Should I Buy LRC?
Purchasing a token in the crypto market is majorly centered around what you stand to gain from such tokens. While some tokens are bought because of their hype, others are bought because they have so many uses. However, buying LRC should be centered around using it for transactions and staking. The Loopring project provides one of the easiest ways to carry out transactions, seeing as it borders on solving issues on Layer 1. This way, transactions are faster, and traders pay cheaper for them. Besides that, traders who prefer to help the network in terms of validation can stake their tokens and help secure the network to earn rewards. However, traders should note that they should only purchase tokens with spare cash as it would help them focus on the market.
How To Buy LRC On Binance
Traders who intend to buy the LRC token can do so across so many exchanges that support the token. However, below is a detailed guide on how to purchase the token on Binance;
Step 1 – Sign Up/Log In
The first step toward purchasing your LRC token is to sign up on the exchange. Here you are mandated to register an account using your correct personal details. You will also be required to verify all the submitted details. Once you are done, you will be required to undergo more KYC verification, which will help you unlock higher levels of withdrawals. Once you are done with this step, you can move on to the next.
Step 2 – Deposit Funds
Once you are done signing up, you will need to deposit funds that can be used to purchase the LRC token into your wallet. Binance offers a wide range of deposit options. However, traders just need to know which deposit options are available to their respective locations. You can use the credit/debit card method or the bank transfer method. Also, traders can send in other cryptos like Bitcoin, which will be exchanged for USDT on the app.
Step 3 – Buy USDT and Buy LRC
After you are done with the step above, you will need to purchase stablecoins with the funds in your wallet. This is because the LRC token only pairs with stablecoins such as BUSD and USDT on Binance. You can now choose a pairing, set your order, and wait for the tokens to arrive in your wallet. This will be done once your order limit has been reached.
Conclusion
The Loopring project, like most projects, brings something real into the market. Besides traders leveraging its services, decentralized exchanges are also allowed to make use of its services. However, traders should be careful in the market because thugs are subject to change instantly. This is why it is good to conduct research at every interval in the market. It is also advisable to diversify one’s portfolio to help you limit your losses in a declining market.