Two Ethereum Scaling Altcoins Are Surging As Bitcoin and Crypto Markets Consolidate
The altcoins for two Ethereum network scaling solutions are continuing to trend upwards despite the overall crypto market correction of the last week.
Scaling solution blockchains are typically second-layer protocols like off-chain layers or side chains built on top of main chains like Ethereum to increase transaction throughput. The Loopring (LRC) platform is one such scaling solution, empowering users to develop Ethereum-based decentralized exchanges (DEXs).
Loopring has seen incredible growth over the last month, increasing in value by approximately 140% over the past two weeks. Despite being down 17% on the week, LRC is trading at $2.67 at time of writing, up 15% over the last 24 hours.
Another scaling solution seeing huge gains today is Immutable X (IMX), the first zero-knowledge rollup (ZK-rollup) for non-fungible tokens (NFTs) on Ethereum. ZK-rollups reduce computing and storage resources for block validation by decreasing the amount of data held in a transaction by bundling hundreds of transfers off-chain, generating cryptographic proof.
IMX, the native token of ZK-rollup platform Immutable X, is currently trading at $6.85, up 28% over the last day and 32% over two weeks.
Both Ethereum scaling solutions aim, in part, to keep transaction costs low and speeds fast on a network known for high gas prices. In the context of crypto, gas refers to the cost necessary to perform a transaction on a given network. Ethereum network gas fees, collected in Ethereum (ETH), continue to be high regardless of the recent market downturn.
At time of writing, the average gas fee associated with swapping a token on Uniswap (UNI), Ethereum’s leading DEX, is $144.63. For many potential blockchain users, these types of gas costs may be considered too high.
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