The various problems faced by the Ethereum blockchain have made it an easy target for layer-2 projects. Layer-2 blockchains are those linked to a layer-1 blockchain to help provide specific solutions. They include zk-Rollups, Optimistic Rollups, sidechains, and Plasma. Of all the scaling solutions for Ethereum blockchain, Polygon and Loopring are the most popular.
Initially, Polygon was called Matic when it was launched in 2017 by Jaynti Kanani and three others. However, in February 2021, it was rebranded as Polygon, a platform that helps Ethereum solve its problem of scalability. It lowers transaction costs, increases speed, and improves security. It is sometimes called Ethereum’s internet of blockchain due to its cross-chain functionality.
Loopring was created in 2017 by Daniel Wang to host automated market makers (AMMs). It uses zk proofs to aid transaction speed and efficiency. It also features on-chain data availability, which consists of order rings, order miners, and order sharing. It supports low cost, high throughput, and non-custodial DEXs.
Although they are both scaling solutions, Loopring only serves DEXs and Polygon works on every platform from DeFi to NFTs, DEXs, and dApps. This implies that Polygon is more versatile than Loopring. While Polygon can handle about 7,000 transactions per second, Loopring can only process 2,000. Similarly, Polygon charges lesser ($0.25) than Loopring ($0.74) for Ether-based transactions.
Both MATIC and LRC have gone through swift price actions, from $2.92 in December 2021 to $1.73 right now and from $3.75 in November 2022 to $1.00 now respectively. Due to its low fees, speed, scalability, and numerous use-cases, MATIC would make a good investment. This is evident with its mainstream adoption.
It is ranked 15th with a market cap of $11.8 billion compared to Loopring, which is ranked 83rd with a market cap of $1.2 billion. Both still cost lesser than $2 and have been predicted to do times three before the year ends. Deciding on the better investment would rely on their use-cases. Based on this, MATIC is the better investment.
That said, go ahead and do better research before investing in any token. Be certain you are investing the money you can afford to lose. Deal wisely.