LayerZero bounces amid market rally, ZRO rises 20%

LayerZero (ZRO) has become one of the first altcoins to jump in the middle of the market retracement. The token has recorded green numbers despite its controversial token launch last month. As a result, investors and market watchers remain bullish on ZRO’s long-term performance.

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From ZRO to Market Hero

At the end of June, the omnichain interoperability protocol LayerZero launched its long-awaited ZRO token. The launch, which included a token airdrop for users of the protocol, received a negative response from the crypto community.

Users found the airdrop claim mechanism to be a slap in the face to the community. Minutes before the launch, the LayerZero Foundation announced that a new ‘Proof-of-Donation’ claim mechanism would be used for those who wanted to receive their token allocation.

The mechanism required users to donate $0.1 in USDC, USDT, or ETH, per allocated token. Donations would go directly to the Protocol Guild, a collective funding mechanism for Ethereum developers.

LayerZero received feedback on this measure. Many community members found that the project was “milking” their supporters and that it lacked proper communication. As a result, the token had a 38% drop after launch.

ZRO went from trading at an all-time high of $4.57 (ATH) to $2.83. The retracement continued as it hit its all-time low (ATL) of $2.48 in the week after its inception.

Since then, the token has recovered by 53%. ZRO’s bullish trajectory began last week as Bitcoin (BTC) regained its $60,000 support zone. The token moved from its ATL to a two-week high of $4.2.

However, LayerZero’s token followed the rest of the market in the rebound. BTC’s performance pulled ZRO back to the $2.75 level earlier today, but it has rallied over 20% in the last few hours.

As of this writing, ZRO is one of the few altcoins to record green numbers over multiple time periods. Furthermore, the protocol token shows double-digit gains on the weekly and bi-weekly timeframes, with 40.2% and 22.1% price increases.

Investors grow in LayerZero

Following this performance, investors and market watchers expressed a bullish sentiment about the token. Some dealers claim that ZRO “held up relatively well during the dump” and is now “very difficult to recover”.

Crypto trader CryptoKnight highlighted ZRO’s bullishness and suggested that the token could reach $5 in the short-term time frame. Similarly, SpiderCrypto believes that ZRO will reach $10 by the end of the year. For the market watcher, LayerZero is “the best infrastructure company for those who believe in a multi-chain future”.

Apparently, users remain secure in the protocol despite the boot failure. Some investors consider it one of the “cleanest brands around” with a sign that it’s “not a hard sell to people with a little FOMO.”

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LayerZero Labs recently announced its integration with Flare, a data-centric blockchain, to enable Flare developers to connect to 75 other networks. According to the post, the integration will connect the blockchain to 50,000 dApps and provide access to a “massive amount of new users and sources of liquidity.”

At the time of writing, ZRO is trading at $3.81, representing a 21% increase in the last 24 hours.

Featured Image by Unsplash.com, Chart by TradingView.com