Business

Loopring (LRC) price jumps 50% after integrating GameStop’s NFT marketplace

Fulfilling multiple needs within the cryptocurrency community is one way a project can differentiate itself from the competition and attract new users and liquidity to its ecosystem.

Loopring aims to do just that by aiming to offer a low-fee, EVM-based solution where DeFi and NFT developers and investors can transact. The Layer-Two (L2) scaling solution leverages zk-Rollups to provide fast and low-cost transactions, and the project picked up momentum throughout March.

Data from Cointelegraph Markets Pro and trading view shows that the price of LRC rose by 57% between March 21 and March 23, when the price surged from $0.78 to $1.23, while the 24-hour trading volume rose to $2.75 billion .

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LRC/USDT 4 hour chart. Source: TradingView

Three developments that helped spark the price turnaround for LRC are the beta launch of the GameStop NFT marketplace on the Loopring network, the influx of new users, and a rapidly growing NFT ecosystem.

GameStop selects Loopring for its upcoming NFT marketplace

The most significant recent development that helped boost demand for LRC was the March 23 announcement GameStop has integrated the beta version its NFT marketplace with the Loopring network.

GameStop reports that it chose Loopring to host its NFT marketplace because of the network’s ability to mint NFTs at a fraction of the cost required on Ethereum, with the average fee being less than $1.

Beta users can now start exploring the marketplace and deposit funds in preparation for the full launch of the platform, which is expected in the near future.

Increasing user growth

A second factor that got wind in the sails of LRC was the surge of new users in the Loopring ecosystem, as evidenced by the record high number of wallets joining the network.

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Total number of Loopring wallets. Source: Dune Analytics

Accordingly Data by Dune Analytics, the Loopring network wallet count has increased from 6,498 on October 30, 2021 to an all-time high of 27,092 on March 25, as the GameStop announcement helped usher in a new wave of users.

The recent release of the Loopring smart wallet, which includes the ability to mint NFTs and retrieve a lost account via Social Recovery and Guardians, has also helped onboard new users and wallets into the ecosystem.

Related: GameStop is filling up with rumors of a Microsoft NFT gaming partnership

An expanding ecosystem

A third factor helping to improve LRC’s prospects is the overall growth of its ecosystem, which includes an NFT community that has already minted more than 1 million NFTs.

More evidence of his growth can be found in the daily newspaper volume traded on Loopring, which saw a significant spike in activity following the March 23 GameStop announcement.

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Loop ring volume traded per pair per day. Source: Dune Analytics

VORTECS™ data from Cointelegraph Markets Pro began to see a bullish outlook for LRC on March 20th, ahead of the recent price spike.

Exclusive to Cointelegraph, the VORTECS™ Score is an algorithmic comparison of historical and current market conditions derived from a combination of data points such as market sentiment, trading volume, recent price movements, and Twitter activity.

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VORTECS™ Score (green) vs. LRC price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECS™ Score for LRC moved into the green on March 19th and peaked at 88 on March 20th, about 40 hours before the price surged 57% over the next two days .

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.