Ethereum’s first zero-knowledge rollup, Loopring, announced Sunday the closure of its decentralized exchange and automated market maker, ending all trading services and halting the relayer effective immediately.

In a post on X on Sunday, the team cited three main reasons for the closure: its failure to gain meaningful adoption, a lack of business development skills and being technologically surpassed by modern zkEVM solutions.

“To be honest, Loopring never gained meaningful adoption,” the team said. “As the first zk-rollup, we lacked a virtual machine – no composability, no real‑world payment use cases. That limitation kept our ecosystem from growing.”

Loopring was a technical pioneer of its time, raising $45 million in a 2017 initial coin offering and helping to prove that scaling Ethereum via zk-rollups was viable. But technology evolves fast in the crypto industry, and it was ultimately surpassed by the more capable successors it helped inspire, such as zkSync, Scroll and StarkNet.

The team said they are “engineers at heart,” not business operators, excelling at writing code but never developing the “passion or skills for business development.”

“External pressures – including major exchange delistings of LRC in 2026 – only accelerated the inevitable,” they said. 

The team added that pressure from more advanced competitors, which are fully compatible with Ethereum smart contracts, “while our specialised architecture now feels obsolete,” compounded the decision to gracefully end it, “rather than running a hollow service.”

Loopring had already shut down its wallet services in July 2025, citing scaling challenges. 

Related: Syndicate Labs winds down after 5 years, citing shrinking rollup market

With the DEX closure, the team said it will be calculating and publishing all final user balances, then distributing funds directly to users’ Ethereum wallets in batches and covering gas fees. 

Loopring’s total value locked is about $8 million, down almost 99% from the $760 million peak in November 2021, according to L2Beat. Its native token, LRC, has collapsed by a similar amount to $0.01 from its all-time high in the same month of $3.75. 

Loopring’s total value locked has collapsed over the past five years. Source: L2Beat

One of Loopring’s biggest milestones was a 2021 partnership with GameStop to power its NFT platform, launched the following year. 

Crypto winter bites deep this year

The demise of Loopring adds to the growing list of crypto closures this year, as the bear market deepens and previous-cycle narratives no longer apply. 

More than 60 crypto projects and protocols have already shuttered services in 2026, according to RootData. Some of the more notable ones include a16z-backed decentralized self-custody solution Entropy, app-chain infrastructure protocol Syndicate and AI blockchain platform Yupp.

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