- Loopring price exploded in the past three days due to high Ethereum gas fees.
- Loopring is a Layer2 scaling solution and its final version is expected to be launched on March 15th.
In the past several days, the average gas fee that users have been paying on the Ethereum network exploded. A normal trade on Uniswap was averaging $60 and other DeFi tasks could cost as much as $100 which made it practically impossible for small holders to move their tokens around.
Loopring price gains traction thanks to low fees
One of the main benefits of Loopring is that it uses no gas and only charges a small 0.25% fee. Many investors have noticed it and shifted their focus on LRC as it seems to be a potential solution to Ethereum’s high fees.
LRC/USD daily chart
Loopring price was around $0.175 on January 3 before the massive rally towards $0.621. The digital asset continues trading at $0.55 at the time of writing. Several on-chain metrics have turned positive for LRC.
LRC Holders Distribution
It seems that the number of whales holding at least 10,000,000 coins has exploded from 20 on January 3 to 27 currently. A significant increase which indicates they expect the price to rise even higher.
LRC IOMAP chart
The In/Out of the Money Around Price (IOMAP) chart suggests that LRC bulls face very little resistance to the upside compared to the support below. However, the price is overextended at the moment.
It seems that LRC would need a pullback soon to remain in a healthy uptrend. According to the same IOMAP chart, a potential dip towards the crucial support area between $0.43 and $0.448 could be likely in the short-term.