The challenges facing the Ethereum blockchain have made it an easy target for Tier 2 projects. Tier 2 blockchains are linked to the Tier 1 blockchain to help provide concrete solutions. These include zk-Rollups, Optimistic Rollups, sidechains, and Plasma. Of all the solutions for scaling the Ethereum blockchain, the most popular are Polygon and Loopring. Let’s compare Loopring vs Polygon to find the best option.
Polygon was originally called Matic when it was launched in 2017 by Janty Kanani and three others. However, in February 2021, it was renamed Polygon, a platform that helps Ethereum solve the scalability problem. This reduces transaction costs, increases speed, and enhances security. It is sometimes referred to as the internet of the Ethereum blockchain due to its cross-chain functionality.
Loopring was formed in 2017 by Daniel Wang to host AMMs. It uses zk proofs to improve the speed and efficiency of transactions. It also has data availability on the network, which consists of order rings, order miners, and order exchange. It supports low cost, high performance, and non-custodial DEXs.
While both are scaling solutions:
- Loopring only caters to DEXs;
- Polygon runs on all platforms, from DeFi to NFTs, DEXs, and dApps.
This means that Polygon is more versatile than Loopring. While Polygon can process around 7,000 transactions per second, Loopring can only process 2,000. Similarly, Polygon charges a lower fee ($0.25) than Loopring ($0.74) for Ether-based transactions.
MATIC and LRC quickly changed the price, from $2.92 in December 2021 to $1.73 now and from $3.75 in November 2022 to $1.00 now. MATIC is a good investment with low fees, speed, scalability, and multiple use cases. This can be seen in its mass introduction.
It is ranked 15th with a market capitalization of $11.8 billion compared to Loopring, which is ranked 83rd with a market capitalization of $1.2 billion. Both still cost less than $2 and are projected to triple in price by the end of the year. Deciding on the best investment will depend on their use cases. Based on this, MATIC is the most profitable investment.
A comparison between these two projects must also assess the investment prospect. Matic and LRC will cause good profits for investors. Matic’s many use cases will remain an advantage. Nevertheless, Loopring’s stress on fast-growing DEXes can even be of advantage. It is not enough to choose a cryptocurrency; you need to find a trusted service for buying and exchanging any crypto pair, for example avax to ftm.
Who wins the battle?
After reaching the layer-2 solutions, Matic seems like a more functional project because it has solutions for various smart contracts. The network even includes inexpensive gases and increased throughputs. When it comes to investment, both Matic and LRC maintain high promises. Nevertheless, Matic’s extensive service issues may provide it an edge in the future against Loopring.