Loopring
LRC
Evaluation Score
Overall rating on a scale of 0-10
Dimension Breakdown
AI Analysis
Comprehensive evaluation of the token
Loopring (LRC) presents a severely impaired investment profile driven primarily by the official winding down and deprecation of its core protocol and products. On 30 June 2026, the decentralized exchange and automated market maker were closed, relayers taken offline, and user funds returned to Layer 1 addresses. Active Development received an Insufficient Data (-1.0) score and was excluded from the weighted average calculation, with its weight redistributed across the remaining categories. Across remaining sections, Tokenomics scored 5.5/10 due to fixed supply and token burn mechanics, though utility demand is degraded; Team and Governance scored 4.0/10 and Community Support scored 3.0/10 due to multi-year governance dormancy; Market and Use Case scored 3.5/10 reflecting heavy Layer 2 competition and a 99.8% drawdown; and Security scored 4.0/10, noting historical incidents including a $5M Smart Wallet 2FA exploit in June 2024 and a 2020 fee vault exploit. Because the core protocol and products have been officially deprecated and wound down, the token carries high risk of continued obsolescence.
Development Activity
Code updates and developer engagement
Community Support
Social media presence and community engagement
Tokenomics
Supply, distribution, and utility
Market & Use Case
Value proposition and competitive landscape
Team & Governance
Team background and project governance
Security & Audits
Security history and audit status
About Loopring (LRC)
Loopring (LRC) is the native utility and governance token of the Loopring protocol, a project that has officially wound down and deprecated its core protocol and decentralized exchange products. Founded in 2017 and structured around the Loopring Foundation, Loopring was built as an Ethereum-based zkRollup Layer 2 protocol designed to facilitate orderbook decentralized exchanges (DEXs), automated market makers (AMMs), and payment channels. By July 2025, earlier decentralized finance products such as Portal and Dual Investment were wound down, and the DEX and AMM were officially closed on 30 June 2026, taking relayer services offline and returning user funds to Ethereum Layer 1 addresses.
The LRC token operates as an ERC-20 contract with a fixed capped supply of approximately 1.37 to 1.39 billion tokens and no ongoing emission schedule. Its design incorporated deflationary mechanisms, including a 10% protocol fee burn, and served functional use cases such as protocol fee distribution, staking, Snapshot-based DAO governance, and operator bonding requirements of 250,000 to 1,000,000 LRC. Despite maintaining an on-chain holder base across more than 164,000 addresses, organic governance activity experienced multi-year dormancy, recording no active proposals since 2022–2023.
Loopring has experienced notable security incidents, market competition, and valuation declines over its operational history. In December 2020, an access-control vulnerability in the protocol fee vault (CVE-2020-35962) resulted in an exploit draining approximately 80.97 ETH. On June 9, 2024, an infrastructure breach compromising the centralized Two-Factor Authentication (2FA) server used by the Loopring Smart Wallet allowed an attacker to drain roughly $5 million from 58 user wallets via the social recovery mechanism. Facing extensive competition from other Layer 2 scaling networks such as Arbitrum, Optimism, zkSync, and Starknet, the token trades roughly 99.8% below its all-time high following the sunsetting of its wallet and core services.