LayerZero (ZRO) Price Prediction

Deep Dive

1. Stargate Acquisition & Revenue Capture (Mixed Impact)

Overview: LayerZero’s approved $110M acquisition of Stargate Finance merges the cross-chain bridge’s revenue stream into its ecosystem. Post-deal, 50% of Stargate’s fees will fund ZRO buybacks for 6 months, then 100% post-2026 (The Block).

What this means: Immediate revenue-sharing (Stargate processed $70B+ volume) could offset ZRO’s -55% annual decline. However, dissolving Stargate’s DAO risks alienating existing STG holders – 95% approval had heavy whale influence, suggesting centralized governance concerns.

2. Protocol Fee Activation Vote (Bullish Catalyst)

Overview: ZRO holders are voting on activating a fee (0.01-0.05% per cross-chain message) starting June 2025, with proceeds buying/burning ZRO. Quorum requires 50.4% participation (Binance Square).

What this means: If passed, daily burn could remove 0.2-1% of supply monthly at current $20B+ message volume. This deflationary mechanism historically lifted ETH’s value post-EIP1559, but low voter turnout (common in DAOs) might stall implementation.

3. Vesting Schedule & Supply Shock (Bearish Risk)

Overview: 23.13% of ZRO’s circulating supply ($46M) unlocks on June 20, 2025, followed by 2-year monthly vesting. Insiders hold 50%+ of total supply, creating sell pressure risks (CoinMarketCap).

What this means: Similar unlocks crashed APT (-18% post-event) and SUI (-22%) in 2023. ZRO’s 31% monthly drop suggests weak demand to absorb new supply – sustained sub-$1.50 could trigger panic selling.

Conclusion

ZRO’s 2025 outlook balances ecosystem growth against inflationary supply. The Stargate integration and fee burn could catalyze a rebound toward $2 if cross-chain activity recovers, but June’s unlock may test $1.30 support. Watch the fee vote turnout – a successful burn mechanism would signal long-term holder conviction. Can LayerZero convert interoperability dominance into sustainable token demand before unlocks escalate?