LayerZero (ZRO) Price Prediction

Deep Dive

1. Strategic Partner Unlocks (Bearish Impact)

Overview:
32.2% of ZRO’s supply (322M tokens) allocated to investors/partners began unlocking in June 2025 with monthly vesting through 2027. The first major unlock on June 20, 2025, released $46M ZRO (23% of circulating supply), historically correlating with 15-30% price declines post-unlock for similar projects.

What this means:
Increased sell pressure from early backers seeking returns could suppress prices near-term. However, LayerZero’s $50M buyback program (CryptoBriefing) may partially offset dilution.

2. Protocol Fee Governance (Mixed Impact)

Overview:
ZRO holders vote every 6 months to activate cross-chain message fees (0.01% per tx), with proceeds used to buy/burn tokens. The December 2025 referendum failed due to low turnout (50.4% quorum unmet), leaving fees inactive.

What this means:
Delayed fee activation deprives ZRO of deflationary mechanics, but future successful votes could create upward pressure. The next referendum in June 2026 serves as a key catalyst.

3. Stargate Acquisition Synergy (Bullish Impact)

Overview:
LayerZero’s $110M acquisition of cross-chain bridge Stargate (finalized August 2025) redirects 50% of Stargate’s $20M+ annual revenue to ZRO buybacks. Post-integration volume surged 540% to $86B/month (The Block).

What this means:
Revenue-sharing ties ZRO’s value to real cash flows, with Stargate’s liquidity dominance (70% market share) providing durable demand. Analysts estimate buybacks could reduce supply by 1-2% quarterly if volumes hold.

Conclusion

ZRO’s trajectory hinges on balancing unlock-driven sell pressure against ecosystem growth from Stargate synergies and future governance decisions. The June 2026 fee referendum and partner unlock schedule (next 2.47% release in July 2026) are critical inflection points.

Watch: Can LayerZero maintain >$50B/month cross-chain volume to justify its $405M valuation amid rising competition from Wormhole and Axelar?