Deep Dive
1. Protocol Focus Shift (Mixed Impact)
Overview: Loopring is sunsetting Dual Investment and Portal products by July 2025 to prioritize zkRollup scalability. These products contributed ~18% of 2024 fee revenue but relied on centralized market makers (Loopring blog).
What this means: While streamlining could improve long-term decentralization, the immediate 23% drop in active wallets post-announcement (July 2025) shows user attrition risk. Price may test $0.04 support if migration to new systems lags.
2. Liquidity Squeeze (Bearish)
Overview: Coinbase will delist LRC/USDT and LRC/BTC pairs on Dec 15, 2025 – part of a broader culling of 51 tokens across exchanges like ProBit. LRC trading volume fell 34% in 30 days post-announcement.
What this means: Reduced accessibility may amplify volatility. The remaining USD pairs’ 0.129 turnover ratio (vs 0.18 sector average) suggests thinner order books. Historical precedent: AXS dropped 51% after similar delistings.
3. Layer 2 Arms Race (Bullish)
Overview: Loopring’s zkRollup processes 2,025 TPS at $0.0001 fees – still a top-5 L2 by verified proofs/day. The $7.5B ZK sector grew 88% YoY, with projects like Linea and Starknet gaining traction.
What this means: If Ethereum’s Dencun upgrade (March 2026) sparks L2 demand, LRC could retest its 200-day EMA at $0.075. However, it must counter Polygon’s 43% market share in ZK rollups.
Conclusion
Loopring’s price will hinge on executing its leaner protocol vision while battling exchange attrition. The $0.047 Fib support and $0.073 50% retracement are key technical levels. Can LRC’s proof-of-efficiency model outpace consolidated rivals if the Altcoin Season Index breaks 40? Watch the LRC/ETH ratio post-December delistings for liquidity stress signals.