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- Hassle-free L1 to L2 transfers
- The price of Loopring escalated to 34% this week
- Any ENS address will work for the transaction
With the upscaling value of Ethereum, consequently, transfer fees for the transaction surged to new heights. Layer 2 scaling was needed to minimize the transactional costs. The gas transfer service from Loopring has made it a warrior to fight with increased transactional fees. This decentralized exchange firm is successful in making transactions cheaper.
The problem of Gas fees
In this month, Ethereum has bothered many average users because of its higher gas fees. The financial pain was felt by most of the crypto users in the market. Organically, the giant crypto industrialists haven’t been affected much. For the majority of users, participation in DeFi became difficult because of the high gas charge.
In December, Loopring created and launched AMM to address this problem. It adopted and promoted the Layer 2 solution to lighten up the burden of Ethereum. It allocated some work to a few other mechanisms and side chains.
L2 to L1 address transfer
Looping has offered the transferability to any ERC 20 based wallet address of layer one from the L2 wallet. There is no hard and fast rule to inform the recipient about L2. All the DEX users found it convenient to transfer crypto assets without paying any excessive transfer fees. To be more concise, this means crypto transfer can occur even when your friend hasn’t heard about L2; if you have an Ethereum address or ERS name, then your friend can only excess those cryptocurrency funds using any e-portal which shows L2.
Privacy of AMM
Loopring stated all the transactions are being compressed by zkSNARK for the sake of scalability in zkRollup. The rollup produces the transaction data on the blockchain for security. Eventually, it doesn’t provide privacy. L2 liquidity mining incentives have reached four figures, which show that it is gaining popularity because of the heavy demand for Ethereum. However, the transactional fees have surged over $16 on January 11, 2021, falling to $5.
An escalation in the LRC Price
LRC is the native token of Loopring, which has reached a new height by escalation up to 34% by $0.42 this week. On January 6, the spike calls to $0.50, making its price 1600% from last year. Similarly, like higher staying altcoins, all the gains are drowning to an all-time increment of around $2.40 three years ago.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
