LayerZero (ZRO) Price Prediction

Deep Dive

1. Zero Blockchain & Institutional Backing (Bullish Impact)

Overview: LayerZero's announcement of its own "Zero" blockchain is a major catalyst. Backed by Citadel Securities, Google Cloud, DTCC, ARK Invest, and Tether, it targets institutional-grade trading and settlement with 2M TPS. CEO Bryan Pellegrino confirmed ZRO will be the sole staking and gas token for Zero, with all ecosystem fees (from Zero, LayerZero, and Stargate) flowing back to ZRO (Coinedition). The mainnet launch is slated for fall 2026.

What this means: This fundamentally expands ZRO's utility from a governance token to the core economic engine of a high-performance L1. Institutional partnerships provide credibility and could funnel significant on-chain activity and fee revenue through ZRO, creating a powerful demand-side catalyst over the next 6-12 months.

2. Recurring Token Unlock Schedule (Bearish Impact)

Overview: ZRO faces a predictable, heavy supply overhang. Approximately 32.6 million tokens (worth ~$52.25M) unlock on the 20th of each month (AMBCrypto). These unlocks are for strategic partners and core contributors, who may sell to realize returns, directly increasing circulating supply.

What this means: This creates a structural headwind. Each unlock represents potential sell-side pressure, capping rallies and exacerbating downturns, especially in weak markets. For sustained price growth, new demand from adoption must consistently outpace this monthly supply inflation.

3. Technical Positioning at Key Support (Mixed Impact)

Overview: As of February 25, ZRO trades at $1.52, down 18.6% over 30 days. Technically, the price is near the 78.6% Fibonacci retracement level ($1.63) from its recent swing high, a common reversal zone. The RSI (14) at 42.79 shows it is approaching oversold territory, which can precede a bounce.

What this means: While the trend is bearish, the confluence of Fibonacci support and a less extreme RSI suggests selling pressure may be exhausting. A hold above this level could trigger a short-term relief rally. However, any bounce needs strong volume to overcome the overarching downtrend driven by unlocks and market sentiment.

Conclusion

ZRO's path hinges on whether explosive growth in network utility from Zero can outrun its monthly token unlocks. Holders face a volatile grind upward, where each unlock tests conviction but major partnerships lay a foundation for long-term revaluation. Will the next monthly unlock be absorbed by buyers or trigger another leg down?