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Wednesday

03 March 2021

Layer-2 race heats up as Loopring (LRC) price gains 430% in 2021

Layer-2 race heats up as Loopring (LRC) price gains 430% in 2021


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While a lot of the focus in decentralized finance (DeFi) has been on the creation of a sprawling multichain ecosystem following the recent emergence of Binance Smart Chain and Avalanche, those who wish to stay on Ethereum have turned to layer-two solutions like Loopring as their preferred method of escape.

As shown above, the decision to launch an automated market maker (AMM) as part of Loopring v3 led to increased engagement on the platform, and it accounts for 60% to 90% of Loopring’s total volume.

The analysts at Delphi Digital did offer a word of caution, as Loopring's native LRC token currently accounts for more than 40% of the nearly $250 million in total value locked (TVL) on Loopring v3.

Despite the recent hype around cross-chain solutions that harken back to the “Ethereum killer” days, it would be wise to note that the largest DeFi protocols on Ethereum are committed to the network through the adoption of layer-two infrastructure like Optimism and zk-Rollups.

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