Loopring, Ethereum’s First zkRollup Project, Shuts Down DEX

Loopring, an Ethereum-based zkRollup project, has shut down its decentralized exchange.

The Block reported on June 29 that Loopring announced the closure in a post on X and halted relayer operations immediately afterward.

Loopring said that, as Ethereum’s first zkRollup, it lacked a virtual machine, composability and real-world payments use cases. Those limitations stunted the ecosystem’s growth. The team also said its zkEVM architecture had fallen behind newer solutions fully compatible with Ethereum smart contracts. Limited business development capabilities and external pressure, including the delisting of its LRC token from major exchanges, also contributed to the decision.

User assets will be returned through a direct reimbursement process. Rather than requiring users to generate and submit Merkle proofs themselves, Loopring said it would cover all transaction costs and return assets directly. The team plans to publish a final list of Layer 2 balances within days and, after a two-week review period, upgrade the smart contract so only team-controlled addresses can withdraw assets.

The DEX shutdown comes about a year after Loopring wound down DeFi products including Dual Investment and its portal. Steve Guo, Loopring’s chief executive officer, stepped down in August 2025. The Block reported that LRC was trading at $0.012 as of the morning of June 29, down 4.24% over the past 24 hours.

Loopring said it was born from a pure cypherpunk ethos and chose to end the service with dignity rather than keep an empty platform running.