Loopring: More than a Meme

Key Insights

• The Loopring ecosystem consists of a zero-knowledge proof scaling solution, a decentralized exchange, a smart wallet, and a token.
• After the deployment of the Layer-2 counterfactual wallet, the smart wallet total count has rapidly increased over the past six months by nearly 5x to over 30,000.
• Currently retaining 15% of the overall Ethereum Layer-2 TVL market share, the Loopring decentralized exchange has not seen the same sustained user growth as its Layer-2 competitors.
• New features such as NFT minting, fiat onboarding, improved throughput, and low transaction fees create a complete ecosystem for developing new projects, such as the GameStop NFT marketplace.

Ethereum’s high gas fees have created a financial barrier for common retail investors to interact with the network, even for the simplest of transactions. Loopring’s Layer-2 (L2) scaling solution aims to break down this barrier by performing cost-intensive computations off-chain through a unique peer-to-peer ring trade mechanism. While most other L2 scaling solutions aim to host third-party applications, the Loopring DEX and smart wallet were initially designed to be the only products operating on the rollup solution. Loopring strives to provide a standalone financial system that at its core connects users in a fast, secure and cost-effective environment.

Loopring History