Blur

LayerZero

LayerZero price suffered a harsh reversal on Friday, erasing all gains made on Thursday after its airdrop. 
LayerZero plunged to $3, down from this week’s high of $4.57. As it dropped, the token’s market cap fell below the $1 billion mark at $745 million. 
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LayerZero price chart 
LayerZero’s price, which <a href="https://crypto.news/layerzero-price-spiked-after-airdrop/" target="_blank" rel="">we predicted</a>, happened as the crypto industry went through a major sell-off with most tokens falling by double digits. Bitcoin dropped below the key support of $64,000 while the market cap of all tokens fell to $2.33 trillion.&nbsp; 
It also dropped as LayerZero’s users blasted its proof-of-donation mechanism during its airdrop. All token claimants had to donate $0.1 to the Protocol Guild to claim tokens, a novel approach to airdrops. 
ZRO token also crashed as some users complained that they had not received their allocations. In a <a href="https://layerzerofoundation.support/allocation-appeals" target="_blank" rel="">statement</a>, the developers noted that they had launched a platform to appeal and correct their allocations.&nbsp; 
Further, this decline happened as some ZRO recipients liquidated their positions. As we reported recently, most of the <a href="https://crypto.news/nansen-top-41-zksync-airdrop-recipients-hit-sell/" target="_blank" rel="">zkSync recipients dumped</a> their tokens after the airdrop. 
Still, as we wrote on Thursday, ZRO’s performance was in line with how most tokens trade after their airdrop. For example, Sei rose to $0.2128 shortly after its airdrop, dropped to a record low of $0.09, and then eventually rallied to $1.04.&nbsp; 
Similarly, Sui initially rose to $1.4 then tumbled to $0.3, and then jumped to an all-time high of $2.10 within less than a year. 
Therefore, some traders who have suffered heavy losses maintained that they will hold their tokens and wait for a recovery.&nbsp; 
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 Don’t want to make the same mistake with <a href="https://twitter.com/search?q=%24ZRO&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">$ZRO</a> as I did with <a href="https://twitter.com/search?q=%24W&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">$W</a>, but &lt; $3B FDV seems cheap if/when the market gets hot again Difference with <a href="https://twitter.com/search?q=%24W&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">$W</a> is I was adding from $12b to $7b hoping for the “airdrop fractal” pump Buying cheaper than the latest VC round doesn’t seem like a… <a href="https://t.co/XPEf7AcgEa" target="_blank" rel="">pic.twitter.com/XPEf7AcgEa</a>— Blur (@BlurCrypto) <a href="https://twitter.com/BlurCrypto/status/1804193299424481420?ref_src=twsrc%5Etfw" target="_blank" rel="">June 21, 2024</a>
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LayerZero’s price rebound will depend on how the crypto market performs in the next few weeks. It will likely continue falling if Bitcoin maintains its bearish trend and crosses $56,527, its lowest point in May.&nbsp; 
Altcoins tend to have a close correlation with Bitcoin. For example, most altcoins soared to their multi-year or all-time highs as Bitcoin hit its record high in March. They then retreated as Bitcoin lost momentum.&nbsp;

LayerZero price suffers a harsh reversal as traders bet on a rebound

crypto.news

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