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New NFT campaign, but is it the same old Loopring again

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Source : Unsplash

Last year, Loopring made headlines for its unanticipated rally on the price charts. While that was once considered to be the beginning of a sustained hike, the altcoin soon fell victim to the prevalent market bearishness. 

Even today, five months later, Loopring is still attempting to revive that rally. And yet, it is sadly failing at it.

Loopring stuck in a bearish loop

In order to gain the interest of older investors or attract new ones, Loopring is trying its best by giving every strategy a shot. The latest in the mix is an NFT contest campaign. 

The contest, which began last week, encourages deposits into the L2 for an opportunity to receive a Loophead NFT. In its announcement, Loopring stated,

“Users who make an ETH, LRC, USDC, USDT, ENS, or UNI deposit onto Loopring L2 will have a chance to win a Loophead NFT.”

As lucrative as it may sound, the contest turned out to be a bust. The underwhelming response from investors did not do anything for the altcoin. 

Down by 65% in 2 months, the network did not gain anything out of it as transaction numbers of new investors have all remained unchanged. Furthermore, the daily transactions on-chain have dropped from over 4.32k in December to just 754 this week. 

Similarly, in the span of 2 months, the network has only added 4k new investors.

Furthermore, the volume traded on Loopring V2 has now dropped to just $4.8 million. Back in November, during the rally, the volumes averaged at $17 million.

Loopring V2 volume | Source: Dune – AMBCrypto

Although the number of Loopring wallets created did see a significant increase over the last two months, up from 17.5k to 23.3k, the transactions per day have been dragging in double digits.

As a result, Loopring’s adoption has come down. The same is visible by the drop in network growth too.

Loopring network growth | Source: Santiment – AMBCrypto

Additionally, the lack of volatility will not be helpful at the moment. Usually, lower volatility is good in a rising market, but since LRC is already at a pretty low level, higher volatility could swing the price in either direction.

Hopefully for investors, it’ll be upwards of $1.

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Aaryamann is a freelance crypto journalist working with AMBCrypto. He is currently investing his time in the crypto-space. He has a keen interest in DeFi, the ever-expanding possibilities of blockchain technology, as well as the political impact they would have.

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