Despite the market’s downward turn, LayerZero’s altcoin, ZRO, has managed to keep its head above water, the green in its ledger a sign of resilience in a field awash in red. This rally comes as a surprise following the controversial token airdrop last month that had sparked an unexpectedly adverse reaction among the crypto community. Yet, despite the bumps on the way, market watchers and investors remain hopeful for ZRO’s future trajectory.
LayerZero, a pioneer in omnichain interoperability protocol, had unveiled its much-anticipated ZRO token in late June. Yet, the laudable launching came with an unforeseen caveat—a token airdrop accompanied by a contentious claim mechanism. LayerZero Foundation, minutes away from the token’s launch, disclosed a new ‘Proof-of-Donation’ mechanism for token allocation.
This unexpected twist involved users making a $0.1 donation in USDC, USDT or ETH for each token allocated. These funds would then go straight to Protocol Guild, essentially a collective fund for Ethereum developers. LayerZero faced a considerable fallout from the move, with members of the community feeling betrayed and taken advantage of. This led to a 38% plunge in the token’s value immediately after its launch.
Trading at its zenith of $4.57, ZRO experienced a rapid descent to a low of $2.83. The downward spiral continued, culminating in an all-time low of $2.48 just a week post-launch. However, the story didn’t end at the bottom. ZRO bounced back, reclaiming 53% of its value despite market-wide retrenchment.
When Bitcoin’s price rebounded back to the $60,000 support zone, ZRO hopped onto the wagon, scaling from its rock bottom to a forthright biweekly high of $4.2. Not immune to the market’s oscillations, ZRO mirrored the market’s retrace, dragged back to $2.75 as Bitcoin lost ground. Nevertheless, it displayed a remarkable recovery, bouncing back by over 20% in a matter of hours.
Currently, ZRO holds the distinction of being one of the few altcoins to register gains across multiple timeframes, scoring double-digit increases in weekly and biweekly timespans, with 40.2% and 22.1% price surges respectively. Despite last month’s controversial moves, this performance has bred a bullish sentiment among investors and market watchers, projecting a rapid recovery for ZRO, even suggesting a growth to $5 in the short term, and perhaps $10 by the end of the year.
LayerZero, despite early blunders, has been recognized as a promising infra company for those who see a multichain future. Indeed, its recent integration with Flare, a data-oriented blockchain, allowing Flare developers access to 75 networks, 50,000 dApps, and a surplus of new users and liquidity sources, only further consolidates this faith.
As of this moment, ZRO is trading at a respectable $3.81, marking a 21% upswing over 24 hours – a sign that the token is not just surviving, but thriving amidst the turmoil. In a world filled with uncertainty, ZRO’s tale of resilience serves as a delectable hope for a greener tomorrow in the crypto space.
