LayerZeros price surged following an airdrop
The LayerZero (ZRO) token experienced a significant surge in value following its successful airdrop, with its price soaring nearly 10% to a peak of $4.40. This impressive valuation surpassed that of several established entities such as Flow, Ethena, Quant, and the Ethereum Name Service.
Despite the developers’ mandate for airdrop claimants to contribute 10 cents to bolster the ecosystem, the token continued its upward trajectory. This minor contribution is anticipated to generate $18 million in support of the Protocol Guild.
The token’s ascent was further propelled by the inclusion of LayerZero on major exchanges like OKX, ByBit, and HTX, which commenced trading activities for the token on their platforms.
Historical patterns, however, hint at a potential decline in the token’s value in the near future, as airdrop beneficiaries tend to liquidate their holdings. A recent example is the zkSync token, which saw a downturn post-airdrop due to mass sell-offs by its holders.
Cryptocurrencies typically witness a price spike following an airdrop, driven by trader excitement, only to experience a retraction shortly thereafter. For instance, Notcoin’s valuation skyrocketed to $0.027 on its debut day in May, then plummeted by more than 50% the next day. In a similar vein, Sei’s value escalated to 1 post-airdrop in August of the previous year, before tumbling down to $0.09 within a matter of weeks. Consequently, it is plausible that ZRO’s price may emulate this pattern and decline in the subsequent days.
Nevertheless, there is a silver lining as most tokens demonstrate resilience, rebounding after the initial sell-off. Sei, for example, recovered from a low of $0.096 to attain a new high of $1.15. Likewise, Notcoin rallied to a new zenith of $0.030 following its initial slump.
LayerZero has distinguished itself as one of the most significant airdrops of the year. Based in Vancouver, the platform operates a cutting-edge technology that facilitates the transfer of data across diverse blockchains. Presently, it supports networks such as Ethereum, Arbitrum, Optimism, Base, and Avalanche, with plans to extend its compatibility to additional chains in the near future. Among the decentralized applications leveraging this network are Ethena, Stargate, Conflux, and AAVE.
