I do think that it's possible the world will end to start anew, and Loki as breaker of worlds might have a part in that.
I don't necessarily subscribe to the belief in Ragnarok. I feel it has too many Christian parallels to definitively say that it's an indigenous European belief. There's Jormungand, who's the dragon, Surt is Satan, Loki is the anti-Christ and Fenrir is the beast, then in the end conveniently all of the "evil pagan" gods die, leaving Christians to say that only God survived because he wasn't weighed down by evil sin. It's also interesting and also convenient that Surt leads "the sons of Muspel" into the world, similarly to how in Revelation Satan brings demons and spread fire throughout the world.
I think that instead it's much more likely that ideas of these gods were corrupted by Christian influence into Northern Europe, and Armageddon ideas influenced Ragnarok.