- Loopring ended its decentralized exchange after limited adoption and rising competition from zkEVM platforms.
- The team will return eligible user assets directly to Ethereum Layer 1 wallets through batch distributions.
- Users will have a two-week review period before distributions begin, with Loopring covering all gas fees.
Loopring announced the immediate shutdown of its decentralized exchange on June 28, 2026, ending trading services and taking its relayer offline. According to the Loopring team, the Ethereum-based project closed the platform after limited adoption, exchange delistings of LRC during 2026, and growing competition from zkEVM networks. The team also outlined a plan to return eligible user assets directly to Ethereum Layer 1 addresses.
Loopring Details Reasons Behind Closure
The announcement marked the end of one of Ethereum’s earliest zkRollup projects. Loopring said it helped demonstrate how zero-knowledge proofs could scale Ethereum. However, the team stated that its architecture lacked a virtual machine.
As a result, the network could not offer composability or broader payment use cases. Loopring also cited business challenges. The team said it focused on engineering and did not develop strong business development operations.
At the same time, major exchange delistings of the LRC token in 2026 added further pressure. According to the announcement, those factors accelerated the decision to discontinue the service.
The team also noted that newer zkEVM solutions now provide full compatibility with Ethereum smart contracts. Consequently, Loopring described its specialized architecture as outdated compared to current alternatives.
Team Plans Direct Asset Distribution
Following the shutdown, Loopring said users will receive their funds through a direct distribution process. The team chose that approach instead of requiring users to submit Merkle proofs. According to the announcement, Loopring will first publish a complete list of final balances.
The list will include spot holdings and converted liquidity pool positions. Notably, the team will automatically redeem all AMM positions into their underlying assets. Therefore, users will not need to redeem LP tokens themselves.
Next, Loopring plans to upgrade the DEX smart contract. The updated version will allow only whitelisted addresses controlled by the team to move assets from Layer 2.
Review Window and Distribution Timeline
Before distributions begin, Loopring will provide a two-week public review period. During that time, users can verify balances and report discrepancies. After the review window closes, the team will begin batch transfers to associated Ethereum Layer 1 wallets.
Only accounts holding at least $10 in final value will qualify for distribution. Loopring said it will cover all gas costs connected to the transfers. The team expects distributions to finish within several weeks after the process begins and plans to provide updates through X.
