Loopring is a unique protocol that tends to maintain the pros of DEX and CEX and increase efficiency by eliminating custody risks. To answer, whether LRC is a good investment or not, let’s analyze LRC in detail
Is Loopring a good investment? Competitor analysis
To delve into the question, or “Is Loopring a good investment?”, let’s first analyze its competitors.
Two major competitors to Loopring are Meter and Quant. Quant connects blockchains on a global scale as well as maintaining network efficiency and interoperability.
Another competitor is Meter. Meter is an infrastructure that connects and scales the financial Internet. It offers interoperability and cross-chain scalability to scale smart contracts through a heterogeneous blockchain.
Price movements of competitors
In addition to LRC’s price movement, let’s take a look at how its competitor has done so far this year.
The current market price of MTRG is $2.20 and has decreased by about 2.37% over the last 24 hours. The market price of MTRG decreased by more than 386% in one year, as suggested by the chart attached below:
The market price of QNT is $108.9 and has decreased by about 6.13% over the last 24 hours.
The market price of QNT has decreased by more than 107% in one year, as the chart above suggests, while in the case of LRC, there is a decrease of 843% compared to the last 12 months (attached below).
In addition, LRC is down 1.287% from its all-time high, meaning the coin has tremendous capacity for growth in the future.
As we can see, Loopring is currently working better than its competitors (for a month) and has many other additional features that can help cryptocurrency traders trade safely and easily.
Is Loopring a good investment? What are its distinctive features?
- It combines centralized exchanges with decentralized ones and creates a protocol with unique combined advantages.
- Loopring removes the custody and transparency risks associated with centralized exchanges.
- It removes the lower efficiency and limited capacity 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 its competitor in a year, but has performed much better since last month. In addition, its unique features make it different from all its existing alternatives.
As we know, centralized exchanges have always been popular, but they have their drawbacks. For example, they are custodial in nature and therefore the funds contained in them are at risk of being hacked by hackers. In addition, they lack transparency.
Is it worth buying Loopring: Conclusion
In the current scenario, when people are switching to decentralized exchanges (mainly after the FTX crash), they should also know the disadvantages of DEXs. For example, decentralized exchanges have lower efficiency and have limited capabilities depending on the underlying blockchain. Therefore, Loopring has great potential to survive the current scenario because it potentially eliminates the cons of both CEX and DEX.
Is it worth buying Loopring? The answer is yes to keep it as a medium-term investment, but not a long-term one.