loop ringEthereum, one of the first projects to bring zero-knowledge collection technology to Ethereum, announced the immediate closure of its decentralized exchange and automated market maker (AMM). The decision, which was shared with the public on June 28, 2026terminates all crypto trading activity on the platform and takes the supporting relay offline without delay.
The project started in 2017 from a vision focused on achieving significant improvement using zero-knowledge proofs. Ethereum‘s scalability and reduction of trading and payment costs.
This was the first zkRollup distributed Ethereum The mainnet was around 2019-2020 and once supported significant activities.
However, its use has declined sharply in recent years.
by chain data According to viewers, Loopring’s total value locked has fallen to roughly $8 million; This represents a decline of nearly 99% from its peak of over $760 million in late 2021.
In their statement, the team explained that Loopring was never widely adopted.
The original design did not include a full virtual machine, which prevented easy composability with other Ethereum implementations and limited real-world uses such as seamless. payments.
— Loopring💙 (@loopringorg) June 28, 2026
Core contributors described themselves as engineers rather than business developers and noted that they struggled to create the partnerships and marketing necessary for broader growth.
Additional pressures, including delisting of the project’s local LRC token Demands from major centralized exchanges in 2026 accelerated the outcome.
Newer zkEVM-based rollups that offer full compatibility with Ethereum smart contracts have also made Loopring’s proprietary architecture increasingly obsolete.
Rather than continue to maintain the service with minimal activity, the team chose to complete operations in an orderly manner.
This marks the final step of the phase-out. Loopring had already discontinued its smart feature purse It will enter service in mid-2025.
The team confirmed that user funds held in Loopring Layer 2 remain safe.
To simplify the process, the project will distribute assets directly rather than requiring users to perform the following actions: self custody It follows from Merkle proofs.
In the coming days, a full list of final balances, including spot holdings in ETH and ERC-20 Tokens plus automatically converted liquidity positions will be issued and linked to the project’s X account.
Users will be given a two-week review window to check their figures and report any discrepancies.
After the review period, the team will upgrade the relevant smart contract to enable mass withdrawals controlled by whitelisted addresses.
funds Files worth $10 or more will then be sent in batches directly to users’ Ethereum Tier 1 wallets.
crypto- The focused project will cover all gas fees associated with these transfers. Balances below the $10 threshold will be excluded to keep the process manageable.
The entire deployment is expected to be completed within a few weeks once it begins.
Once the balance list appears, support questions can be directed to help@loopring.org.
The closure underscores intense competition in Ethereum’s Layer 2 environment, where projects offering greater flexibility and developer tools are gaining stronger traction. Loopring expressed gratitude to its users and hoped that the zero-knowledge advances it helped make possible in the early days will continue to benefit users now. crypto- ecosystem through other initiatives
