ZRO token takes the lead in market downturn with a 14 decrease
LayerZero, a company known for its cross-chain interoperability technology, has seen a sharp decrease in the value of its native token, ZRO. The price of ZRO has dropped by 14%, making it the biggest loser in the crypto market today. As of now, ZRO is trading at $2.68, which is a 13% decrease over the past 24 hours. CoinMarketCap reports that the token’s trading volume has also fallen by 41% to $146 million during this time. Additionally, the market capitalization of LayerZero’s crypto assets has fallen below $700 million, currently standing at $670.8 million.
LayerZero is known for its fully connected mesh network that allows smart contracts deployed across various blockchains to interact with each other. This cross-chain interoperability is an important solution for bridging value across decentralized networks.
The decline in ZRO’s price aligns with a widespread sell-off in the crypto industry, with many tokens experiencing double-digit losses. Bitcoin, for example, has dropped below the critical support level of $63,000, and the overall market cap of all tokens has decreased by 3.5% in the last 24 hours to $2.27 trillion.
The drop in ZRO’s price also follows user dissatisfaction with LayerZero’s proof-of-donation mechanism during its airdrop. Some users reported not receiving their token allocations and the company faced criticism for requiring a $0.1 donation to the Protocol Guild to receive tokens.
Moreover, the decline in ZRO’s price also reflects the broader market context, with all top 100 cryptocurrencies experiencing losses in the past 24 hours. The Fear and Greed Index has shifted to the neutral zone, currently standing at 51.
The future trajectory of LayerZero’s price will largely depend on the overall performance of the crypto market in the coming weeks. If Bitcoin continues its bearish trend and falls below $56,527, ZRO is likely to continue its downward trend. Altcoins often closely follow Bitcoin’s movements, surging to multi-year or all-time highs when Bitcoin reaches new records and retreating as Bitcoin loses momentum.
