LayerZero crypto has fallen 2% overnight due to a token unlock taking place today (June 20), which will see 24.68 million ZRO tokens unlocked to ‘Strategic Partners’ and ‘Core Contributors’, amounting to $44.68 million at current prices.
The unlock of 24 million ZRO tokens is equivalent to more than 21% of the LayerZero crypto market cap, a worrying statistic that is causing significant volatility within the project due to the substantial dilution that accompanies such a sizeable unlock.
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Token Unlock Schedule For LayerZero Crypto Will Make It Difficult For ZRO To Break Out Of Its Downtrend Anytime Soon
While today’s token unlock for LayerZero crypto is bad enough, the most worrying part is that it will be repeated on the 20th of each month through til June 2027. This means significant selling pressure will persist for the ZRO token over the next two years.
ZRO launched one year ago today, June 20, 2024, and has had a rocky road for most of its journey thus far. It launched at $3.44, and by December 2024, it had surged nearly 100% to $7.13 but has been stuck in a downtrend ever since.
From those December highs, ZeroLayer crypto dropped over 80%, to $1.62, before a brief rally in March took it to $3.32. It was a short-lived revival, and ZRO has since fallen again, where it is currently trading for around $1.8, and struggling to break out.
Even with the increased sell pressure plaguing the ZRO token with its monthly unlocks, it has held steady above a key support level of $1.65 and now faces resistance at $2. If ZeroLayer can break out above $2 on an LTF, a move toward its next heavy resistance zone between $3.10-3.25 is the logical next step.
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What Is LayerZero And What Function Does Its ZRO Token Hold?
LayerZero crypto is an omni-chain protocol designed to connect different blockchains, enabling seamless communication and asset transfer between them. Its primary function is to bridge the gap between different blockchain networks, making them work together more efficiently.
Its native utility token, ZRO, is used for transaction fees, staking, and governance within the protocol, essentially powering the entire LayerZero crypto ecosystem.
During multiple funding rounds between 2021 and 2023, LayerZero received investment from Circle, Coinbase Ventures, A16Z, OKX Ventures, Sequoia Capital, and many others.
According to CryptoRank, just over $318 million was raised in total, and these VCs are the beneficiaries of the monthly token unlocks for the ZRO token.
While projects like LayerZero crypto are struggling against heavy token unlocks that will continue to cause heavy selling pressure for the next 24 months, projects such as Solaxy (SOLX) are a much more appealing option due to their favourable tokenomics and community-led funding round.
BONUS: Solaxy (SOLX) Hits $55.5 Million In Funding With Just Three Days Before The Presale Comes To A Close
One project that won’t suffer with two years of constant sell pressure is Solaxy (SOLX). This brand new project has enjoyed one of the biggest presales this year, securing $55.5 million, making $60m a real possibility before the window slams shut in just three days.
LayerZero crypto raised over $300 million from some of the leading VC companies within crypto, which seems positive on the face of it. However, those VCs are the beneficiaries of the monthly token unlocks that are taking place until June 2027, and these VCs aren’t investing out of the kindness of their own hearts; they do so to make a profit down the line.
So, while the ZRO token will struggle to offset the sell pressure that comes with these large token unlocks, SOLX has raised its $55.5m (and counting) from many smaller investors in a community-led approach.
At launch, it is likely that there will be some selling pressure for SOLX as presale investors begin taking profit. However, it will be short-lived as smaller investors are seeking that huge 1000x play, and many will choose to hold a blue-chip investment such as Solaxy.
Solaxy is the first-ever Layer-2 protocol built on Solana, giving it a first mover advantage in a space that is valued at over $12 billion, per CoinGecko. While the majority of other L2’s are built on Ethereum’s infrastructure, Solaxy is the first to take advantage of the speeds and low cost of fees on Solana.
The team at Solaxy is using its revolutionary L2 technology to build a full ecosystem of products, giving users an all-in-one suite of tools for their on-chain shenanigans.
So far, the team have announced a token launchpad, an in-house DEX, a bridge for Ethereum – Solana – Solaxy, allowing traders to bridge from Ethereum or Solana, launch a token via the Igniter protocol, graduate that token onto the Neptoon DEX and see it flourish – potentially creating the first 1000x play on Solaxy.
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The team recently published the full release schedule for Solaxy. SOLX token claims start on June 23, the same date the bridge goes live. Then, staking unlocks take place a week later, on June 30.
Other notable dates are the mainnet launch on July 7, the DEX launch on July 14, and finally, the token launchpad release on July 21.
For the best experience purchasing SOLX, use Best Wallet when prompted to connect a wallet on the Solaxy presale website. It is the recommended noncustodial Web3 wallet with full presale integration and multichain support.
Follow Solaxy on Telegram and X for all the latest project updates.
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