As a seasoned crypto investor with several years of experience under my belt, I’ve seen my fair share of airdrop-fueled price rallies. LayerZero (ZRO) is the latest addition to this list, and while its success story is impressive, I can’t help but approach it with a cautious optimism.
The cost of LayerZero (ZRO) surged following the successful execution of its airdrop, recording a nearly 10% increase that peaked at $4.40. Its market capitalization outstripped various renowned brands such as Flow, Etherna, Quant, and Ethereum Name Service.
Despite the developers’ requirement for every claimant to contribute a penny, the token continued to gain value. This contribution is expected to generate around $18 million in total, which the Protocol Guild will utilize.
After some major exchanges such as OKX, ByBit, and HTX introduced trading for LayerZero on their respective platforms, it experienced a surge in activity.
New Listing ALERT 🚨
📈 $ZRO/USDT @LayerZero_Labs Spot Trading is now open!
Trade now:
— OKX (@okx) June 20, 2024
Based on historical trends, I believe it’s likely that the price of this token will experience a pullback in the near future due to a significant number of airdrop recipients selling their tokens. For instance, zkSync token experienced a crash just this week following its airdrop as many of its new holders opted to liquidate their positions.
Cryptocurrency prices often surge immediately after an airdrop due to trader excitement, only to experience a significant decline within the subsequent days. For instance, Notcoin’s price soared to $0.027 on its debut in May before plummeting by more than 50% the next day.
Based on Sei’s price behavior following its airdrop last August, which saw a significant surge to $1 before crashing down to $0.09 within a short timeframe, there is a possibility that ZRO may experience a similar price trend in the upcoming days and potentially experience a drop in value.
Most tokens bounce back after initial sell-off
As a crypto investor, I’ve noticed that many tokens experience a rebound after an initial price surge or dip. For instance, Sei, which dropped to $0.096 at one point, later reached a new peak of $1.15. Similarly, Notcoin saw a surge in price to $0.030 following its initial decline.
This year, Vancouver-based LayerZero has emerged as one of the most significant airdrops, offering a unique tech solution. Its function allows apps to seamlessly transfer data between various blockchain networks.
The network currently supports integration with Ethereum, Arbitrum, Optimism, Base, and Avalanche chains, with plans to include additional ones in the near future. Some notable dApps running on this network are Ethana, Stargate, Conflux, and Aave.
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2024-06-20 16:36