As Bitcoin and crypto markets consolidate, two Ethereum scaling altcoins are surging
Blockchain scaling solutions are typically second-layer protocols, such as off-chain layers or side chains built on top of main chains like Ethereum to increase transaction processing performance. This platform, Loopring (LRC), enables users to build Ethereum-based decentralized exchanges (DEXs).
Loopring has seen incredible growth in value over the last two weeks, increasing by approximately 140%. As of the time of writing, LRC is trading at $2.67, up 15% over the last 24 hours despite being down 17% on the week.
Immutable X (IMX), the first zero-knowledge rollup for non-fungible tokens (NFTs) on Ethereum, is another scaling solution seeing huge gains today. By bundling hundreds of transfers off-chain, ZK-rollups reduce computing and storage resources required for block validation by reducing the amount of data held in a transaction.
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.