LayerZero (ZRO) has become one of the first altcoins to rise amid the market downturn. The coin has been in the green despite its controversial launch last month. As a result, investors and market watchers remain optimistic about ZRO’s long-term performance.
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From ZRO to Market Champion
In late June, the multi-chain interoperability protocol LayerZero launched the long-awaited ZRO token. The launch, which involved sending the token to the protocol’s users, received negative feedback from the crypto community.
Users found the airdrop claiming mechanism to be a slap in the face to the community. Minutes before launch, the LayerZero Foundation announced that a new mechanism would be used to claim “proof of donation” for those who wanted to receive their token allocation.
The mechanism required users to donate $0.1 USDC, USDT, or ETH for each dedicated token. Donations would go directly to the Protocol Guild, a crowdfunding mechanism for Ethereum developers.
LayerZero was heavily criticized for this move. Many community members felt that the project was “bleeding” its supporters and lacking proper communication. As a result, the coin saw a 38% drop after launch.
ZRO price dropped from its all-time high (ATH) of $4.57 to a low of $2.83. The decline continued as it reached its all-time low (ATL) of $2.48 a week after its launch.
The coin has since recovered by 53%. ZRO’s bullish run began last week when Bitcoin (BTC) reclaimed the $60,000 support area. The coin moved from the intermediate support level to a two-week high of $4.2.
However, LayerZero token followed the rest of the market in a pullback. BTC’s performance sent ZRO back to $2.75 earlier today, but it has surged by over 20% in the past few hours.
As of this writing, ZRO is one of the few altcoins to record green numbers on multiple timeframes. Furthermore, the protocol token is showing double-digit gains on the weekly and bi-monthly timeframes, with price increases of 40.2% and 22.1%.
Investors are bullish on LayerZero
Following this performance, investors and market watchers expressed bullish sentiments on the token. Some traders He is certain ZRO “held up relatively well during the crash” and is now “recovering strongly.”
CryptoKnight Cryptocurrency Trader Spotlight ZRO’s surge has suggested that the token could hit $5 in the short-term. Similarly, SpiderCrypto believes that ZRO will hit $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.”
Users still seem to be confident in the protocol despite the launch incident. Some investors It is considered It’s one of the “cleanest brands ever” with a “not hard sell to people with a little fear of missing out” tag.
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LayerZero Labs recently Advertise Its integration with Flare, a data-centric blockchain network, will enable Flare developers to connect to 75 other networks. According to the post, the integration will connect the blockchain to 50,000 decentralized applications and provide access to “a massive amount of new users and liquidity sources.”
At the time of writing, ZRO is trading at $3.81, representing a 21% increase over the past 24 hours.
Featured image from Unsplash.com, chart from TradingView.com