Loopring DEX Launches Layer 2 Bitcoin Trading Pools

Share Article
In Brief
  • Wrapped Bitcoin pools now available on the Loopring L2 DEX.

  • Gas prices have dropped to around $11.50 on average.

  • LRC up 1.5% on the day as liquidity farming continues.

  • promo

    Want to learn how to trade? Get a beginners guide from _BeInCrypto Academy_ now!

The Trust Project is an international consortium of news organizations building standards of transparency.

Loopring, one of the most popular decentralized exchanges, has expanded its trading options with the addition of three wrapped Bitcoin pools on Layer 2.



In a tweet declaring that the exchange has had no Bitcoin trading pairs for so long, Loopring announced the launch of four new pools for wrapped BTC on Layer 2.

Traders on the DEX now have access to wrapped Bitcoin, three stablecoins (DAI, USDC, and USDT), automated market maker pools, and order book pairs.



The total amount of Bitcoin tokenized on Ethereum for use in DeFi is a little under 171,000 BTC. This is worth an estimated $8 billion at current prices. Of that total, roughly 72% is wBTC according to BTConEthereum.

Layer 2 Usage Surging

Loopring, which launched gas-free L2-to-L1 transfers in mid-January, uses zk-rollups on Ethereum to provide high-speed, low-cost transactions. Its throughput is as high as 2,000 trades per second, without sacrificing any Layer 1 security.

The Layer 2 scaling technology batches or “rolls up” transactions to process them off the main chain but secures them via the “zero-knowledge” proof. These and other rollup solutions such as Optimistic have become increasingly popular as Layer 1 Ethereum struggles under heavy load and gas prices.

Noting a fall in gas fees, Loopring suggested that it may be a good time to move some ETH onto the Layer 2 DEX in anticipation of the next spike.

Gas prices have actually calmed down over the week and have returned to some state of normality with the average transaction now costing $11.50 according to BitInfoCharts. This is still higher than it should be but is a vast improvement on the $50 transactions that traders were paying in gas last week.

Industry analyst and Ethereum advocate, Anthony Sassano, recommended a few actions while gas prices are relatively low;

L2 is becoming one of the top choices for protocols wanting to offer savings to their users. Derivatives exchange dYdX switched to Layer 2 on Feb. 24 using StarkWare to power its platform with zk-rollups.

LRC Price Outlook  

Loopring’s native LRC token is up around 1.5% on the day to reach $0.53. It has been hit hard in the crypto market correction however, dropping over 30% in the past seven days.

LRC hit an all-time high of around $2.50 during the previous crypto market cycle in January 2018. Its most recent high was $0.86 on Feb. 13.

The DEX is currently running liquidity mining incentives to farm LRC in 14-day cycles.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Share Article

Martin has been writing on cyber security and infotech for two decades. He has previous trading experience and has been actively covering the blockchain and crypto industry since 2017.

Follow Author

Trade with the Best Crypto Signals - guaranteed profits with over 70% accuracy

Join now

Want to learn how to trade? Get a beginners guide from BeInCrypto Academy!

Learn now

Bybit Bonus Bash. $1,000 Bonus to be Won!

Join now