Is Loopring a good investment?

Is Loopring a good investment?

Loopring is a unique protocol that tends to keep the pros of DEXs and CEXs and increase efficiency while eliminating custodial risks. To answer, whether LRC is a good investment or not, let us analyze LRC in detail

Is Loopring a good investment? Competitor analysis

To dig deeper into the question i.e., “Is Loopring a good investment?”, let’s first analyse its competitors.

Two notable competitors of Loopring are Meter and Quant. Quant connects the blockchains on a global scale along with maintaining the efficiency and interoperability of the network.

Another competitor is Meter. Meter is an infrastructure that connects and scales the financial internet. It offers cross-chain interoperability and scalability to scale smart contracts through a heterogenous blockchain.

Competitors’ price movements

Apart from LRC’s price movement, let’s have a look at how its competitor has done so far this year.

The current market price of MTRG is $2.20 and is down by around 2.37% in the last 24 hours. The market price of MTRG has declined by more than 386% in a year, as suggested by the graph attached below:

Is Loopring a good investment?

Image: 1-year graph of MTRG

The market price of QNT is $108.9 and is down by around 6.13% in the last 24 hours.

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Image: 1-year graph of QNT

The market price of QNT has declined by more than 107% in a year, as suggested by the graph attached above, while in the case of LRC, there is a decrease of 843% since last 12 months (attached below).

image 190

Image: 1-year graph of LRC

Additionally, LRC is down by 1,287% from its all-time high value, meaning that the coin has a huge growth capability in future.

Other factors to compare:

 LoopringMeterQuant Network
Major AudiencePeople looking for highly scalable and non-custodial exchanges.Developers and traders looking for highly scalable smart contracts.Developers looking for blockchain application development studio.
Supported platformsSaas and AndroidSaaSSaaS
CategoriesAMM, Crypto exchanges, dApps, DEXs, Defi projects, Smart contracts and Layer 2 ProtocolsdApps, Defi projects Layer 1 protocols, Layer 2 Protocols and Smart Contracts.Blockchain
IntegrationsTotal 27 integrations including Ethereum and Metamask.Total 19 integrations including Ethereum and Metamask.Quant has only 4 integrations and it doesn’t include Ethereum and MetaMask.

As we can see that Loopring is currently performing better than its competitors (for one month) and has many other added features that can help crypto traders to trade safely and easily.

Also Read: Loopring Price Prediction

Is Loopring a good investment? What are its distinctive features?

  • It combines centralized exchanges with decentralized ones and creates a protocol with combined unique advantages.
  • Loopring removes the custodial and transparency risks associated with centralized exchanges.
  • It removes the lower efficiency and limited capability-related issues associated with decentralized exchanges.
  • Loopring operates on Ethereum and Neo blockchain and has separate tokens for both i.e., LRC and LRN respectively.

LRC has underperformed in a year compared to its competitor, but it has performed much better since last month. Also, its unique features make it different from all of its existing alternatives.

As we know that centralized exchanges were always popular, but have their own disadvantages. For instance, they are custodial in nature, and hence the funds in them are at risk of being hacked by hackers. Also, they lack transparency.

Is Loopring worth buying: Conclusion

In the current scenario, when people are switching to decentralized exchanges (mainly after the FTX crash), they should know the disadvantages of DEXs as well. For example, decentralized exchanges are lower in efficiency and they have limited capabilities depending upon the underlying blockchain. Therefore, Loopring has great potential to survive the current scenario because it potentially eliminates the cons of both CEXs and DEXs.

Is Loopring worth buying? The answer is yes for holding it as a medium-term investment, but not for the long-term.  

-Charu Taneja

Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions

Charu Taneja

Charu Taneja