Why Loopring could test $1 soon
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Loopring and other Ethereum layer-2 solutions are set to explode as Eth 2.0 is now close to becoming fully operational.
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Loopring has an edge for its Zk Rollups that make transactions safe and faster.
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Loopring is currently trading in a bullish channel despite the high volatility.
Ethereum developers have made huge progress towards the launch of Ethereum 2.0. By mid-year, the transition is expected to be complete. It is expected that the impact on Ethereum’s price will be huge because gas fees will drop, and Ethereum will handle a lot more transactions per second than it can today.
The best part is that Eth2.0 will also open up many opportunities for layer 2 solutions. Layer 2 solutions will take a more central role in completing Ethereum-based transactions to get the load off the Ethereum mainnet. One of the projects set to benefit the most from the shift to Ethereum 2.0 is Loopring.
Loopring (LRC) is a decentralized exchange that can be used to trade ERC tokens without having to go through the Ethereum mainnet. Since Loopring uses Zk Rollups, transactions are fast and take a fraction of the cost that they would, were they to be completed on the Ethereum mainnet.
Loopring has been growing in popularity, and with Eth 2.0 almost complete, a lot more transactions will go through Loopring. Loopring is already showing positive signs, and in the past week, when the entire market was turning bullish, Loopring rallied by over 20%. It’s an indicator that once bulls gain control again, LRC could be a winner.
Loopring trading in a bullish channel
Source: TradingView
Since March 18th, Loopring has been trading in a bullish channel, despite the volatility in the broader crypto market. Currently, Loopring is trending towards the 50-day MA resistance at $0.848. If it breaks through this resistance, $1 could be within reach pretty soon.
Summary
Loopring and other layer-2 solutions are set to grow as Eth 2.0 edges closer to completion. Loopring is already showing signs of an uptrend as it continues trading in a bullish channel despite the volatility.
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