Loopring shuts DEX after adoption falls

• Loopring has closed its decentralised exchange after citing weak adoption and increasing competition from newer zero-knowledge rollup networks.
• The protocol will distribute remaining user funds directly to Ethereum (CRYPTO:ETH) wallets and cover gas fees during the process.
• The team said future development in Ethereum scaling has overtaken Loopring's original architecture, contributing to the shutdown.

Loopring (CRYPTO:LRC) has shut down its decentralised exchange and automated market maker after saying weak adoption, limited business development and newer zero-knowledge rollup technologies made the platform no longer viable.

The closure follows years of declining activity, with Loopring's total value locked falling to about US$8 million from a peak of approximately US$760 million in November 2021, while LRC declined to around US$0.01 from its all-time high of US$3.75.

"To be honest, Loopring never gained meaningful adoption," the team said.

Loopring said it lacked a virtual machine, composability and practical payment use cases, while adding that exchange delistings during 2026 and competition from zkEVM-based networks such as zkSync, Scroll and StarkNet contributed to the decision.

The team said it will calculate final user balances, distribute funds directly to users' Ethereum (CRYPTO:ETH) wallets in batches and cover gas fees, while following the announcement the LRC price was unchanged at approximately US$0.01.

Loopring raised approximately US$45 million through an initial coin offering in 2017 and became one of the first projects to demonstrate that zero-knowledge rollups could scale Ethereum transactions.

The protocol also partnered with GameStop in 2021 to support its NFT marketplace, but had already closed its wallet services in 2025 as activity across the project continued to decline.

At the time of reporting, Loopring price was $0.01212.