Why Loopring’s Cryptocurrency Is Soaring Today

What happened

Loopring‘s ( LRC 9.90% ) cryptocurrency is making big gains in today’s trading. The organization’s LRC token was up roughly 9.7% over the past 24 hours as of 11:15 a.m. ET Tuesday. 

The LRC token has been making big gains since it was announced that Loopring’s network would provide foundation-level services for GameStop‘s ( GME -5.42% ) recently released marketplace for non-fungible tokens (NFTs). The cryptocurrency is also likely seeing bullish momentum today thanks to news of the retailer’s recently filed trademark for “GameStop Wallet.”

So what

Loopring is a layer 2 solution built on top of the Ethereum blockchain that provides digital-asset exchange and blockchain-wallet solutions, and GameStop appears to be gearing up to launch its own crypto wallet service. With this initiative seemingly underway and Loopring serving as the foundational software of the retailer’s recently debuted NFT marketplace, there’s a good chance that the blockchain-services company and its LRC token will play some role in GameStop Wallet if the service makes it to market. 

Image source: Getty Images.

Now what

Loopring’s token price has surged roughly 52% over the last seven days. The token now has a market capitalization of roughly $1.7 billion and ranks as the 68th-largest cryptocurrency by valuation. However, LRC’s price per token is still down roughly 66% from the lifetime high that it hit in November. 

Strong adoption for GameStop’s NFT marketplace could create significant bullish momentum for the LRC token, and the retailer launching digital-wallet services based on the company’s tech would likely also be a significant catalyst for the cryptocurrency. It’s also possible that additional NFT marketplaces and wallet services from other providers will use Loopring’s layer 2 solutions as the foundations for their own entries in these categories.