invezz.com
LayerZero’s native token, $ZRO, has captured the attention of the crypto market by surging over 19% in the last 24 hours.
This rally comes amid a broader bearish trend affecting most cryptocurrencies.
Despite on-chain activity showing signs of decline, the token’s price momentum has been strong, and traders and analysts are trying to understand the factors driving $ZRO’s impressive performance.
Here are the main reasons why the price of LayerZero ($ZRO) cryptocurrency is soaring amid a broader bearish crypto market.
Strong retail and trading interest
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$ZRO’s price rally has been fueled largely by retail participation.
The 24-hour trading volume has soared to over $162 million, highlighting heightened market activity.
Traders have been attracted by $ZRO’s technical strength, with the price currently holding above key short and mid-term moving averages.
Momentum indicators like RSI and MACD suggest bullish pressure is building.
In addition, futures trading has seen increased interest in LayerZero ecosystem tokens, such as $TRIA, which recently launched perpetual futures contracts on Binance.
These developments reflect broader derivatives interest that can indirectly boost sentiment around $ZRO.
Retail traders are also responding to recent weekly and monthly gains, which have strengthened confidence in short-term price trends.
Even as on-chain activity drops, speculative trading continues to drive $ZRO upward.
Analysts note that retail-driven momentum has historically had a strong impact on LayerZero tokens.
Upcoming token unlocks
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Another factor influencing $ZRO’s rise is the upcoming LayerZero token unlock event.
Around 25.7 million $ZRO tokens are scheduled to enter circulation soon.
This potential increase in supply has already created speculative buying ahead of the unlock.
Investors are positioning themselves to benefit from short-term price swings before the market absorbs the new tokens.
Speculative trading often magnifies short-term volatility, especially in high-demand tokens like $ZRO.
The fully diluted valuation of LayerZero remains over $2 billion, indicating that even with additional supply, the market perceives value in the token.
This optimism is reflected in $ZRO’s price rising above $2, a psychological threshold that traders often watch closely.
Short-term bullish trends are further reinforced by $ZRO’s recovery from its all-time low of $1.12.
LayerZero ecosystem growth
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$ZRO’s rise is also supported by broader ecosystem developments.
The listing of $TRIA perpetual futures on Binance is part of the growing LayerZero ecosystem.
Increased derivative exposure across related tokens brings liquidity and attracts traders to the ecosystem.
Even if $ZRO itself is not the token being listed, such developments create indirect support through sentiment and capital flow.
LayerZero’s cross-chain interoperability remains a key technological advantage.
Investors are encouraged by the network’s potential for facilitating secure, cross-chain transactions.
The combination of ecosystem growth, derivative activity, and retail interest creates a favourable environment for $ZRO.
Price movements reflect not only speculation but also confidence in LayerZero’s long-term prospects.