Loopring Shows Bearish Sign Even After Rumors Of GameStop Partnership Spur
There was a lot of hype surrounding Loopring after GameStop announced that it would be launching a marketplace for NFTs, later this year. This was specifically due to GameStop’s agreements with two undisclosed crypto companies. According to crypto speculators’ predictions, one of these companies is Loopring.
What Is Loopring?
Loopring, founded by a Chinese programmer Daniel Wang, is a blockchain-based project that works on top of the Ethereum network. The project aims to incentivize a global network of users to operate a platform, enabling the creation of different types of digital asset exchanges.
Additionally, Loopring uses what’s called Layer 2, which carries out transactions off the blockchain to avoid congestion and cost. With this tech, the network doesn’t need to confirm transactions, as the Layer-2 solution will be responsible.
Another key feature includes its high speed and low costs through the use of a newer type of cryptography called zero-knowledge rollups, or zkRollups. Loopring is powered by its native utility token called LRC.
Loopring’s Bearish Run
While the other traditional cryptocurrencies struggled hard to bear above the support levels, Loopring quickly recovered from the losses to its initial levels, in late 2021. Nevertheless, it fell again under the bearish trap.
In general, the Loopring price is bearish in both the short and long-term, yet notable consolidation is expected in short-term.
However, Loopring announced on Twitter that they are “constantly optimizing.” The post read that “Loopring L2 can now Mint an NFT for just $2.50,” which is 100x cheaper than minting on Ethereum L1.
We are constantly optimizing💙
We're happy to share that Loopring L2 can now Mint an NFT for just ~🔥$2.50🔥(@ 100 gwei)
✅100x+ cheaper than minting on Ethereum L1
✅Similar cost to minting on alt L1's + sidechains
But with the advantage of having Ethereum-level security💥🔐 pic.twitter.com/8ZqKtPdPBk
— Loopring (@loopringorg) January 7, 2022
Despite the mention that the optimization has led to cheaper costs to mint an NFT, and with an advantage of having “Ethereum-level security,” it has failed to serve as a bullish catalyst for Loopring.
Like Loopring, NFT tokens such as Axie Infinity’s AXS token, lost more than 20% of its value in the past week, despite interests coming from top companies.