A lesser-known cryptocurrency called Loopring has been booming in November, and has climbed by more than 66 per cent in 24 hours.

The Ethereum-based token is now valued at around $3.70 (£2.74), having been worth less than $1 (£0.74)a week ago.

But what exactly is Loopring, and why has it become so popular? Here is everything you need to know.

What is Loopring?

Loopring says it “builds protocols, infrastructure, and user-facing products for the future of finance”.

It prides itself on its Ethereum layer two (L2) platform, which is says runs at very high speeds – settling up to 2,025 trades per second – while remaining secure.

It does this by using a construction called zkRollup, which proves the validity of crypto transactions off-chain.

Loopring says its objective is “to design and engineer the best-in-class zkRollup exchange and payment protocol on Ethereum, and to operate products that bring it to users across the world”.

The Loopring token (LRC) is the native token of the Loopring protocol, and can be used to pay fees on Loopring L2.

Loopring has its own wallet, the Loopring Wallet, which calls itself the “first smart wallet app with L2 scaling, and provides a secure, intuitive, powerful Ethereum experience in your pocket”.

It costs money to start a wallet – currently upwards of $500. However, these wallets come with a number of security features, such as the ability to lock it and recovery if it gets lost or stolen.

Why is its price soaring?

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