Loopring, one of the earliest projects to bring zero-knowledge rollup technology to Ethereum, has announced the immediate closure of its decentralized exchange and automated market maker (AMM). The decision, shared publicly on June 28, 2026, ends all crypto trading activity on the platform and takes the supporting relayer offline without delay.
The project originated in 2017 from a vision focused on using zero-knowledge proofs to dramatically improve Ethereum’s scalability and reduce costs for trading and payments.
It became the first zkRollup deployed on Ethereum mainnet around 2019–2020 and once supported significant activity.
However, usage has declined sharply in recent years.
According to on-chain data trackers, Loopring’s total value locked fell to roughly $8 million, representing a drop of nearly 99% from its peak above $760 million in late 2021.
In their statement, the team explained that Loopring never achieved broad adoption.
The original design lacked a full virtual machine, which prevented easy composability with other Ethereum applications and limited real-world uses such as seamless payments.
— Loopring💙 (@loopringorg) June 28, 2026
The core contributors described themselves primarily as engineers rather than business developers, noting they struggled to build the partnerships and marketing needed for wider growth.
Additional pressures, including the delisting of the project’s native LRC token from major centralized exchanges in 2026, hastened the outcome.
Newer zkEVM-based rollups, which offer full compatibility with Ethereum smart contracts, have also rendered Loopring’s specialized architecture increasingly outdated.
Rather than continue operating a service with minimal activity, the team chose to conclude operations in an orderly manner.
This marks the latest step in a gradual wind-down. Loopring had already discontinued its smart wallet services in mid-2025.
User funds held on the Loopring Layer 2 remain secure, the team confirmed.
To simplify the process, the project will handle asset distribution directly instead of requiring users to perform self-custody exits via Merkle proofs.
In the coming days, a complete list of final balances—including spot holdings in ETH and ERC-20 tokens plus liquidity positions that will be automatically converted—will be published and linked from the project’s X account.
Users will have 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 batch withdrawals controlled by whitelisted addresses.
Funds valued at $10 or more will then be sent in batches directly to users’ Ethereum Layer 1 wallets.
The crypto 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 distribution is expected to wrap up within a few weeks once it begins.
Support inquiries can be directed to help@loopring.org once the balance list appears.
The closure underscores the intense competition in Ethereum’s Layer 2 landscape, where projects offering greater flexibility and developer tooling have gained stronger traction. Loopring expressed gratitude to its users and hope that the zero-knowledge advancements it helped enable during the early days will now continue to benefit the crypto ecosystem through other initiatives.