New NFT campaign, but is it the same old Loopring again?

Last year, Loopring made headlines for its unexpected rally in the price charts. While that was once considered the start of an ongoing rally, the altcoin quickly fell victim to the prevailing bearishness in the market.

Even today, five months later, Loopring is still trying to revive that rally. And yet it fails unfortunately.

Loop ring stuck in a bearish loop

To capture the interest of older investors or attract new ones, Loopring does its best by giving every strategy a chance. The latest in the mix is ​​an NFT competition campaign.

The contest, which started last week, encourages deposits into the L2 for a chance to receive a Loophead NFT. In his announcement, Loopring declared

“Users who make an ETH, LRC, USDC, USDT, ENS or UNI deposit on Loopring L2 have a chance to win a Loophead NFT.”

As lucrative as it may sound, the match turned out to be a failure. The disappointing response from investors did nothing for the altcoin.

Dropping 65% in 2 months, the network has benefited nothing as new investor transaction numbers have all remained unchanged. In addition, daily on-chain trades have fallen from over 4.32k in December to just 754 this week.

Likewise, the network has only added 4k new investors in the 2 month period.

In addition, the volume traded on Loopring V2 has now fallen to just $4.8 million. In November, during the rally, volumes averaged $17 million.

Race ring V2 volume | Source: Dune – Coin-Crypto

While the number of Loopring portfolios created has risen significantly over the past two months, from 17.5k to 23.3k, trades per day dragged on in double digits.

As a result, Loopring’s adoption has declined. The same can be seen in the decline in network growth.

Loop ring network growth | Source: Santiment – ​​​​Coin-Crypto

In addition, the lack of volatility is not going to help at this point. Usually, lower volatility is good in a rising market, but since LRC is already at a fairly low level, higher volatility is better.latility can make the price swing in both directions.

Hopefully for investors it will be over $1.

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