Cryptocurrency projects that try to fill multiple needs can be more successful than those that don’t. This is because they can offer a solution to a wider range of problems, which makes them more valuable to users and developers. In addition, this can help attract new users and investors, who may not have been interested in the project if it only focused on one thing.
That’s exactly what Loopring (LRC) is doing as the innovative Ethereum-based layer-two (L2) zk-rollups protocol that enables fast and low-cost transactions for investors and DeFi/NFT developers, is quickly gaining traction, particularly with this month’s integration of GameStop’s NFT marketplace. The partnership prompted LRC to respond appropriately by trending higher.
Data from Coinmarketcap shows LRC currently trading around the $1.13 level, up more than 4.5% over the previous 24 hours.
On March 21, the price of the $1.48 billion market cap mid-ranked crypto coin that has a max supply of 1,37B was at $0.79. By mid-day trading on Mach 23, during which the price reached a two month high of $1.21, the altcoin gained a whopping 53%, adding about $550 million to its market value.
LRC is about 65% lower from its $3.37 all-time high, recorded on Nov. 24.
Without excluding the coin’s volatility aspect — after all, LRC, like most cryptos, often trades based on momentum and investor sentiment rather than the performance of Loopring’s underlying business — its latest spike comes as a result of several factors, including the rise in adoption amongst new users and a rapidly expanding NFT ecosystem that’s quickly becoming part of a new way of investment in the digital world.
In fact, with over 1 million NFTs already in circulation, Loopring’s zkRollups function which now allows users to mint NFTs for under $1, is aiming to become a destination for digital economies.
Additionally, the steady increase of wallet count on the Loopring network has seen a massive 6,326% increase, from 428 addresses on Nov. 22, 2020 to 27,506 as of March 26, 2022.
However, and as already mentioned, the beta launch of GameStop’s (NYSE:GME) low-awaited NFT marketplace on the Loopring network on March 23 seems to be the main underlying factor behind LRC’s latest 53% spike.
Loopring L2 x @GameStop
— Loopring💙🏴☠️ (@loopringorg) March 23, 2022
Worth noting is that the GameStop NFT marketplace is a huge deal for the Loopring protocol and could potentially lead to more partnerships with large retailers in the future. This would be a significant win for the network and would solidify its position as one of the top blockchain projects in the space.
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