Dubbed the first zkRollup Layer 2 network, Loopring is a protocol for building non-custodial, orderbook-based decentralized exchanges on the Ethereum blockchain.In 2022, more people started using layer 2s on Ethereum as distinct communities and ecosystems formed around them. In addition, these layer 2s also offered significantly lower transaction fees than the Ethereum main chain, which further contributed to their adoption.
Increased inflation and the surge in liquidity exit from decentralized finance protocols led to a decline in DeFi total value locked in 2022. Primarily built to house DEXes, Loopring did not escape the decline as its TVL fell by 86% during the year, per data fromWith a 1.89% market share of the L2 ecosystem, Looopring was spotted at number five on L2Beat’s list of L2 protocols, with the largest TVL.
Struggling to wade off the bears, the buyers cowered, thereby leaving coin distributors in control of the LRC market.This was confirmed by the position of LRC’s Directional Movement Index . At press time, the sellers’ strength at 34.33 lay solidly above the buyers’ at 10.39. Moreso, the Average Directional Index was spotted in an uptrend indicating that the token distribution trend intensified.
Depicting clearly the oversold nature of LRC at press time, key momentum indicators such as the Relative Strength Index and the Money Flow Index were positioned far from their neutral spots. For example, the RSI was spotted in a downtrend at 24.64. Likewise, the MFI was 31.30, at press time.Subscribe to get it daily in your inbox.