Loki is getting so much hype, it makes one wonder how he could lose to Shanks if he's that strong. Either the hype is real, he's not as strong as expected, or his DF might come with a weakness.
Regardless, if if turns out he is that much stronger than other top tiers, I can only see him dying. Best case he end's up as the respected hypetool for Imu. Deal some damage perhaps permanent, but ends up dying. I always figured this to be Dragon's role in the story, but Loki could also serve the role.