DeFi Loopring Token (LRC) has lost its light – what’s next?

Loopring (LRC) is under severe downward pressure along with the rest of the market. The DeFi token used to be on everyone’s lips thanks to its record profits, but was ultimately hit by yesterday’s sharp decline.

LRC lost its aura

After the token fell 16.95% yesterday to a daily low of USD 1.67, the token rebounded slightly today (+ 2.53% in the last 24 hours), but overall still in the upper bracket after it had reached an ATH of $ 3.83.

Since then, LRC’s 813% increase has been cut in half, as the price is currently trading at $ 1.82 at press time. This event added to the loss that investors long feared.

Source: TradingView

The average balance of each address was around $ 48,400 at its peak, but has since dropped to $ 23,500.

Average balance of addresses | Source: Intotheblock

This is usually for one of two reasons: the number of investors increases, but the price does not, or they lose money. In the case of LRC, both situations currently occur at the same time.

First, thanks to the October rally, the network has had a large influx of new investors at a rate of 10,000 new addresses per month, so the adoption rate increased by 900% as previously, no more than 1,000 investors were adding each month.

Number of LRC addresses | Source: Intotheblock

Second, the drop in prices resulted in almost 22% of all investors losing money because most people joined the network at the time the LRC was rising.

There are currently only 104 safe no-money addresses as they were purchased at the time the price was lowest.

Profitable LRC investors | Source: Intotheblock

Later losses even resulted in some LRC owners selling the assets, and within 10 days, 23 million LRC, valued at $ 36.8 million, were resold on exchanges.

As a result, the overall key value in this DeFi protocol has also decreased by more than $ 317 million in the past few weeks.

Total value locked in the loopring protocol | Source: DeFi Lama

As such, given the current bearish sentiment, investors looking to get involved should be cautious as further losses could be incurred.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page