This post is about LRC and what has to be done in order for the Loopring token to break through the 1.26 dollar barrier and reach $5 in the next 5-6 months. It has a market value of 1.8 billion dollars, down 5% over the last several weeks, and is currently trading at $1.26.
Take a look at the graph; Loopring has just gone parabolic. The price had previously peaked at roughly $3 after falling below $2 on December 6th. We'll answer two questions in today's article: Why did it expand so quickly? What must be done in order to attain a price of five dollars in 2022?
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By looking at the all-time chart, we can see it had a similar run-up in November 2021, hitting its peak at 3 dollars 80 cents, and then another jump back to 3, 50 after 20 days. And a jump here and here. I won't spend too much time explaining Loopring, since many of you already know what it is.
But it is essentially An application that runs on top of Ethereum's blockchain (a layer 1 or the base blockchain). By doing so, Loopring wants to improve the experience of using Ethereum by processing portions of Ethereum transactions on its own network. Imagine it as making a side road to relieve pressure on the main highway.
Loopring's developers claim that this enables the protocol to execute transactions 1,000 times quicker than Ethereum, with peak rates of 2,025 transactions per second. Unlike Ethereum's exorbitant transaction fees, Loopring's transactions only cost a fraction of a penny.
In the previous four weeks, the crypto markets have seen a lot of volatility. Several large-cap cryptocurrencies lost a lot of value in a short amount of time after a flash collapse on December 3rd. Following a 34% decrease in Bitcoin, Ethereum dropped 23%, while Cardano dropped 50%.
Despite the drawbacks, there were some highlights. In this unstable moment, LRC is one of the winners, which explains its appeal.
What makes the Loopring price go up?
Rumors that GameStop, the video game company, would utilize Loopring to build a trading platform for non-fungible tokens or NFTs - blockchain-based art - were one of the causes for the price increase. Neither party has verified or disputed the existence of such a relationship.
Someone may have noticed Loopring's GitHub page and discovered there was code being worked on that implicated GameStop, which sparked suspicion. If you hold Gamestop stocks, you should be aware that an Nft marketplace is on the way.
In addition, I believe that the price of Loopring is linked to the success of Ethereum and other scaling solutions. Loopring could jump on the metaverse bandwagon as well. Particularly Loopring's market value has increased dramatically thanks to blockchain technology, from around 211 million dollars on January 1st to almost 4.5 billion dollars on November 25th.
Before reaching 5 dollars, there are a few things that need to happen
It is down around 5.13 percent on the previous day, with a daily volume of 330 million dollars and a price of 1 dollar and 26 cents. LRC has gone parabolic several times in the previous months, as can be seen below.
On the 10th of November, when it was just 60 cents, the price peaked at roughly 3 dollars and 80 cents. Loopring is entering a new era of development, having established a new support line at $2 for nearly a month now, demonstrating that we don't break it every time we go down. At least a 15% increase in the present price is required.
Why? We have to remain fairly close to the 2.50 dollars mark
Because, as we all know, the next step is to establish a new support line. We shouldn't be shocked to see a 27 percent spike in just three days. Regardless matter whether we lose money or not, 2.50 might arrive very soon.
I'd like to see 2.50 used as a new support level on a regular basis. More surges are possible in the near future, but it should revert to a consistent rising trend, or at the very least a resetting near 2.50 cents is required. When the next spike arrives, it will be simpler to push toward $3 and ultimately $5.
LRC is expected to hit $3 soon, with testing and corrective support falling between $2 and $2.50. Blockchain technology is expected to continue to expand at this rate in the months ahead, promising an exciting future for the project.
Others, however, feel that if Ethereum scales itself, the necessity for scaling would be eliminated, while Ethereum co-founder Vitalik Buterin believes they complement each other. What are your thoughts on this? Will Loopring ever hit $5?