The recent heavy traffic on the Ethereum blockchain seems to have had a beneficial effect on one cryptocurrency project in particular.

The LRC cryptocurrency is part of Project Loopring which is a protocol for building decentralized exchanges (DEXs) on Ethereum.

Project Loopring is also one of the few projects that is currently placed ahead of the curve thanks to its use of the zk-rollup technology, which expands Ethereum transactions from around 15 transactions/sec, to around 3000 transactions/sec.

So it is interesting to note that the value of Loopring increased by 220% from July to September 2020, coinciding with the sudden explosion in the use of Ethereum.

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LRC Climbs Along with Rising Ethereum Fees:

Since the beginning of July 2020, the value of the LRC digital currency has increased by 220% from a price of $0.076 to $0.247.

In the same period, the cost of transactions on the Ethereum blockchain increased by 539% – 1959%, ​​if we take the all-time high of September 2nd as a data point.

With transaction fees on Ethereum soaring, Ethereum founder Vitalik Buterin has been urging developers and users to adopt Loopring’s zk-rollup technology.

Loopring was mentioned by Vitalik Buterin on several occasions in clear reference to the protocol’s capabilities.

On September 1, Buterin responded to claims that Ethereum is too expensive to use for charitable donations, writing:

For those talking about extremely high gas charges, my answer is:

More people should accept payments directly through zksync/loopring/OMG and take it seriously, scaling to more than 2500 transactions/sec for simple payments apps is here, we just need to use it.

Ethereum fee correlation with LRC cryptocurrency price:

The average Ethereum transaction fee has risen throughout 2020, from an early January low of $0.07 to an all-time high of $14.58.

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The upward trajectory of Ethereum transaction fees is very similar to the performance of the digital currency LRC as the value of the coin is up 1176%, from $0.021393 in January, to $0.25 at the time of writing.

Remarkably, the value of Loopring did not plummet on September 2, when Bitcoin and most alternative cryptocurrencies collapsed.

Instead, LRC continued to climb until September 3, when exorbitant Ethereum transaction fees began to return to reasonable levels.

Zk-rollups is a layer 2 scaling solution that can aggregate thousands of Ethereum transactions into a single transfer.

Tether, one of the biggest gas consumers on Ethereum, recently announced that it will adopt the zk-rollup technology in a bid to lower transaction fees.

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