Louis Navellier is rating this stock an “A” – Get In Now!

On May 24, the man who found “the stock of the century” will reveal one of his top stocks for 2022 – for FREE – in a special presentation.

Tue, May 24 at 4:00PM ET
 
 
 
 

Loopring Is Worth Considering Long-Term if You’re Still Bullish on Crypto

When it comes to cryptocurrencies in the near-term, the forecast remains murky. More monetary tightening from the Federal Reserve could put more pressure on this “risk-on” asset class. But if you’re bullish that crypto will survive today’s challenges, and continue to grow in use, a more speculative token you may want to consider buying is Loopring (LRC-USD).

What is Loopring? It’s the native token of the Ethereum (ETH-USD) layer 2 scalability solution of the same name. This network enables low-cost, non-custodial decentralized exchanges (DEXs) to operate on Ethereum. Yes, this is a bit of a mouthful, but it’s important to note all this. This token’s network is one with a lot of utility.

It’s easy to make the mistake that this is a “flavor of the month” crypto with its ties to GameStop (NYSE:GME). Back in March, the video game retailer made known its plans to build an non-fungible token (NFT) marketplace, using Loopring’s technology to run it. This resulted in a short-lived run-up in the price of LRC tokens.

Granted, with the current challenges in the NFT space, GameStop’s NFT venture looks less like a sure thing. However, the future of Loopring doesn’t hinge completely on GameStop. As my InvestorPlace colleague Omor Ibne Ehsan discussed back in April, it could see increased adoption by Web 3.0 developers. This is due to the Ethereum connection. Developers want to run their apps on it, but aren’t too keen on its high fees.

This scalability solution helps to keep fees low. Even once Ethereum’s scalability levels up after its 2.0 upgrades, solutions like Loopring will not go away. Having said all this, when I’m talking about the bull case for this token, I mean the long term, not the short term.

In the near term, crypto will likely stay volatile. LRC is no exception. As a less liquid crypto, it’ll see even wilder swings than ETH and Bitcoin (BTC-USD). It’s also far from certain whether Ethereum, and in turn Loopring, will keep seeing big increases in use going forward. The Web 3.0 revolution could prove to be more hype than substance. Other platforms could grab market share from Ethereum, limiting future growth.

Still, its high utility provides a more substantive reason for buying/holding it. Compare this to memecoins like Shiba Inu (SHIB-USD), where hype is the only thing that can really move it higher. If you’re bullish on crypto’s future, and are looking for high-risk/high-potential return plays, Loopring belongs at the top of your watchlist.

On the date of publication, Thomas Niel held long positions in BTC-USD and ETH-USD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016.


Article printed from InvestorPlace Media, https://investorplace.com/2022/05/loopring-worth-considering-if-still-bullish-on-crypto/.

©2022 InvestorPlace Media, LLC