As a crypto investor with some experience under my belt, I’ve seen my fair share of market volatility and price reversals. And unfortunately, LayerZero’s recent drop is no exception.
On Friday, the price of LayerZero took a significant hit, undoing all progress and profits accumulated following its airdrop on the previous day.
As a researcher observing the cryptocurrency market, I noticed that LayerZero experienced a significant decline in value, dropping from a weekly high of $4.57 to a current price of $3. The consequence of this downturn was a decrease in LayerZero’s market capitalization, which fell beneath the billion-dollar threshold to reach a market cap of approximately $745 million.
LayerZero price chart
The price of LayerZero, which we had forecasted, dipped as the crypto market experienced a significant downturn. Bitcoin plunged beneath the crucial threshold of $64,000, and the combined market capitalization of all tokens sank to $2.33 trillion.
During LayerZero’s airdrop, its proof-of-donation mechanism was met with criticism from some of its users. To receive the tokens, all claimants were required to make a $0.1 donation to the Protocol Guild, marking a unique twist on the conventional airdrop process.
The value of ZRO tokens took a dip after some users reported not receiving their allocated shares. In response, the development team introduced a platform for users to submit appeals and rectify any allocation issues.
Additionally, the drop occurred since many ZRO recipients chose to sell off their tokens following the airdrop distribution. (Reportedly, most zkSync recipients did so.)
Despite our previous analysis on Thursday, ZRO’s price behavior following its airdrop has been typical of most cryptocurrency tokens. For instance, Sei experienced a spike to $0.2128 right after the airdrop, plummeted to an all-time low of $0.09, and later surged up to $1.04.
As a crypto investor, I’ve witnessed some volatility in the price of Sui. It started at around $1.4 before experiencing a significant drop down to $0.3. However, just as quickly as it had fallen, Sui surged up to hit an all-time high of $2.10 within the span of less than a year.
Some traders who have incurred significant losses chose to be patient and keep holding onto their tokens, with the hope that the market will eventually recover.
I’m cautious about investing in $ZRO, having learned a lesson with $W. The $3B market capitalization of $ZRO appears reasonably priced for me, especially if market conditions improve. However, my previous experience with $W was different; I was aiming to buy from a $12b valuation down to $7b in anticipation of an “airdrop fractal” price surge. Purchasing at a price lower than the latest venture capital round investment doesn’t feel like a prudent decision for me.— Blur (@BlurCrypto) June 21, 2024
The recovery of LayerZero’s price hinges upon the crypto market’s behavior over the next several weeks. If Bitcoin persists in its downward trend and dips below its May low of $56,527, it is expected that LayerZero’s price will continue to decline as well.
As an analyst, I’ve observed that altcoins often mirror Bitcoin’s price movements. When Bitcoin reaches new peaks, such as its all-time high in March 2021, many altcoins experience similar gains and hit their own record highs. Conversely, when Bitcoin loses steam and experiences a downturn, altcoins typically follow suit and decline as well.
Read More
- Nadaaniyan song Galatfehmi OUT: Ibrahim Ali Khan, Khushi Kapoor’s heartbreaking separation in love will leave you emotional
- Pop-Tarts and Krispy Kreme Kick Off 2025 With Collaborative Menu
- Cookie Run Kingdom Town Square Vault password
- Alec Baldwin’s TLC Reality Show Got A Release Date And There’s At Least One Reason I’ll Definitely Be Checking This One Out
- The First Trailer for The Weeknd’s ‘Hurry Up Tomorrow’ Film Is Here
- Rick Owens Gives RIMOWA’s Cabin Roller a Bronze Patina
- JJJJound’s Made in Germany adidas Superstars Drop This Week
- Lars Eidinger on Berlin Opener ‘The Light’: “We, the Privileged Wealthy, Are the Problem”
- Ryan Gosling’s Star Wars Movie Here’s Everything We Know
- ‘The Last of Us’ Gets Season 2 Premiere Date
2024-06-21 21:21