Loopring Shuts Down Ethereum DEX After Failing to Achieve Meaningful Adoption

Loopring, one of Ethereum’s earliest zkRollup projects, has officially shut down its decentralized exchange (DEX), bringing the project to an end after years of struggling to attract widespread adoption. The decision marks the final chapter for a platform that once aimed to scale Ethereum through zero-knowledge technology.

Loopring Ends DEX Operations and Plans User Refunds

Loopring announced that its DEX relayer has gone offline, immediately ending trading services. The team said all remaining user funds will be returned through a smart contract upgrade, with the project covering all transaction fees so users will not need to pay gas costs or submit Merkle proofs.

Over the coming days, Loopring will publish a complete list of Layer 2 balances, including spot holdings and automated market maker (AMM) positions. After a two-week review period, the team plans to upgrade the DEX smart contract so only approved team-controlled addresses can transfer assets from Layer 2 for refunds.

Project Struggled to Keep Pace With Ethereum Ecosystem

Loopring said it was the first zkRollup built on Ethereum but acknowledged that its architecture lacked a virtual machine, limiting smart contract compatibility, composability, and practical payment applications. The team also said its zkEVM design was eventually surpassed by newer solutions offering full Ethereum smart contract compatibility.

According to the project, weak business development efforts and the delisting of its native LRC token from major cryptocurrency exchanges also contributed to the decision to close the platform.

Loopring Had Already Closed Other Services

The DEX shutdown follows a series of earlier closures. About a year ago, Loopring discontinued several DeFi products, including Dual Investment and Portal, to focus on its Layer 2 network. It had also shut down its wallet service, while former CEO Steve Guo stepped down in August 2025.

Following the announcement, LRC fell about 4.24% over 24 hours to trade near $0.012, reflecting continued pressure on the project’s native token.