Catering to the needs of the cryptocurrency community is one way a project can stand out from the competition and attract users and liquidity to its ecosystem.
Loopring aims to do this by targeting a low-fee solution based on the Ethereum Virtual Machine (EVM) where decentralized finance (DeFi) and non-fungible token (NFT) developers and investors can trade. A Layer 2 (L2) scaling solution uses zk-Rollups to provide fast and affordable transactions. The project was gaining momentum throughout March.
Data from Cointelegraph Markets Pro and TradingView shows that the price of LRC rose by 57% between March 21st and 23rd. The price rose from $0.78 to $1.23 amid an increase in 24-hour trading volume to $2.75 billion.
4-hour LRC/USDT chart. Source: Trading View
Three events that contributed to the Loopring Prize (LRC) cancellation include the pilot launch of the GameStop NFT marketplace on the Loopring network, the influx of new users, and the rapidly growing NFT system.
GameStop Selects Loopring for Next NFT Marketplace
The most significant and recent development that helped boost demand for LRC was the March 23 announcement that GameStop had integrated its NFT Marketplace beta with the Loopring network.
GameStop stated that they chose Loopring to host their NFT marketplace due to the network’s ability to generate NFTs at a fraction of the cost required for Ethereum, with an average fee of less than $1.
Beta users can start exploring the market now and deposit funds in preparation for the platform’s full launch, which is expected to take place in the near future.
Increasing User Growth
Another factor dampening the sails of the LRC is the increase in the number of new users in the Loopring ecosystem, as evidenced by the record high number of wallets joining the network.
The total number of Loopring wallets. Source: Dune Analytics.
According to Dune Analytics, the number of Loopring network wallets rose from 6,498 on October 30, 2021 to a record 27,092 on March 25, when the GameStop announcement helped bring in new users.
The latest version of Loopring Smart Wallet, which includes the ability to create NFTs and recover a lost account with Social Recovery and Guardians, has helped bring new users and wallets into the ecosystem.
Related: GameStop spreads rumors about Microsoft’s partnership with NFT Games
A third factor influencing the outlook for LRC is the overall growth of the ecosystem that includes the NFT community, with over a million NFTs already affected.
Further evidence of growth can be found by looking at the daily trading volume on Loopring, which saw a significant increase in activity following the GameStop announcement on March 23rd.
Repeat the volume of trades for each pair per day. Source: Dune Analytics.
VORTECS data from Cointelegraph Markets Pro began to reveal a bullish outlook for the LRC on March 20, prior to the recent price hike.
VORTECS Men’s Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions based on a range of data points including market sentiment, trading volume, recent price movements and Twitter activity.