Loopring (LRC) Slips 20% in 5 Days Despite NFT Red Packet 2.0 Launch

by James · April 23, 2023

Loopring (LRC) prices remain under pressure, falling about 20% days after announcement the launch of non-fungible token (NFT) Red Packet 2.0.

Loopring announces Red Packet 2.0

Loopring, a layer-2 decentralized exchange using zkRollups on Ethereum that allows traders to exchange assets, said NFT Red Packet 2.0, currently available on its Loopring Smart Wallet and web app, allows users to transfer ERC-20 tokens and NFTs adapted to the ERC-1155 standard.

Unlike the popular ERC-721 standard for building NFTs, the ERC-1155 version is more flexible, allowing users to create semi-fungible tokens and regular NFTs.

Loopring developers started building Red Packets in 2021. However, developers expanded traditional Red Packets creation when they also announced Blind Red Packets on April 20.

Using this solution, users can only reveal the contents of the “package” after a given period of time.

Supporters claim Red Packets will change the economics of NFTs and drive mainstream adoption while opening up more opportunities, especially in gaming, ticketing and more, primarily due to the costs involved.

Unlike transactions on the Ethereum network, it is relatively cheap to use layer-2 platforms for trading or asset transfer.

Users can safely send assets, including tokens and NFTs, off-chain while avoiding high fees. However, they are still secured by the Ethereum network.

As an illustration, main net users have to pay $43.83 when they type on April 23rd. Meanwhile, based on L2Fees datasending ETH on Loopring costs $0.06.

Because of this allowance, users can package thousands of NFTs on Loopring’s blind red packages and give them to users without having to pay high fees. It is an addition that has been received positively by the Loopring community, but has not stopped prices from falling, as can be seen in the daily chart.

LRC drops 20% in 5 days

LRC is trading at $0.338, down 20% from its April highs, underperforming Bitcoin and Ethereum over the past 24 hours.

Loop ring Price 23 April| Source: LRCUSDT On Binance, TradingView

Notably, prices broke lower on April 19 before being confirmed on April 20 and in the second half of last week.

At the time of writing, prices are stable but remain within a bearish formation, having reversed all losses posted on April 14. On this day, Loopring revealed that more than 200,000 unique addresses were using the platform.

Despite the decline in LRC prices, the token has more than doubled since December 2022, when prices fell to as low as $0.188. The token is also up 30% from March 2023 lows as prices are currently retesting a critical support line.

Featured image from Canva, chart from TradingView