Loopring and Matic are the two leading layer 2s that aim to solve the transaction speed and scaling difficulties faced by Ethereum. Ethereum has seen massive growth in price since its conception in 2015. It reached its ATH of $4,891.70 at the peak of the bull run in November 2021.
However, despite its success, Ethereum has one big problem, its high transaction fees. This is where the layer 2s come in.
As a potential investor, it’s important to understand the differences between Loopring vs Matic. In this Loopring vs Matic guide, we’ll take a closer look at both projects and the differences that set them apart.
What Is Loopring?
Daniel Wang created Loopring in 2017 to host automated market makers (AMMs). The Loopring network combines decentralized and centralized exchange features.
Loopring uses ZK proofs to make transactions quicker and more efficient by minimizing the number of resources needed to validate transactions. It has a high throughput of 2000 transactions per second and supports non-custodial DEXs.
Because of its ability to host DEXs, Loopring helps decentralized exchanges complete a number of transactions. Its native token is LRC which is used to power both its network and its DEX.
The loopring price reached its ATH of $3.75 back in November 2021 and is currently trading at around $0.41
What Is Matic?
Matic is the native token of Polygon, which was launched in October 2017 to provide layer-2 solutions. Polygon is often dubbed Ethereum’s internet of blockchain because it uses PoS consensus while committing chain connectivity to interact with Ethereum.
Polygon allows developers to build decentralized applications (DApps) on its blockchain. The native token is called MATIC, which is used to power the entire Polygon ecosystem.
Like Loopring, Matic allows for secure, low cost and high-speed transactions on the Ethereum blockchain. Matic reached its ATH of $2.61 in December 2021.
The Key Differences Between Loopring vs Matic
Loopring and Matic are the leading layer-2 solutions, but they are some key differences that distinguish them.
The main difference is how they differ in their roles. While Loopring is more DEX-centered, Matic has more use cases. Matic allows developers to build any smart contract. It can be used to create NFT and DeFi smart contracts.
Polygon is also faster than Loopring. Loopring has the capability of executing Ethereum transactions at around 2000 transactions per second. Matic, on the other hand, executes transactions at 7000 transactions per second. While Polygon is faster overall, it’s important to remember that Loopring only operates for DEXES.
Matic is slightly cheaper than Loopring when it comes to gas charges. Reducing gas charges was the primary aim of these layer-2 solutions. The lowest gas fee the Ethereum network has seen is $1.57, whereas Loopring charges around $0.74 for an Ethereum-based transaction, and Polygon transactions are charged at around $0.25.
Which Is the Better Investment?
Hopefully, this Matic vs Loopring guide has answered some of your questions. When it comes to deciding between Loopring vs Matic, Matic looks appears to be the better project.
Both of these layer-2s have great potential and high promises, especially from their current price providing the cryptocurrency market makes a recovery. Matic seems to be gaining greater traction, and the development team is constantly coming out with bigger and better news.
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