LayerZero’s (ZRO) valuation soared following a remarkably successful airdrop, marking a near 10% surge and peaking at **$4.40**. This impressive climb positioned its market capitalization above that of established entities such as Flow, Ethena, Quant, and Ethereum Name Service.
In an unconventional move, the developers mandated a nominal fee of **10 cents** from airdrop claimants to bolster the ecosystem. This strategy is anticipated to generate approximately **$18 million** for the Protocol Guild.
The momentum continued as premier exchanges including OKX, ByBit, and HTX incorporated LayerZero into their trading offerings.
Despite this uptrend, historical patterns indicate a potential decline in ZRO’s price as holders who acquired tokens through the airdrop may commence selling. A recent example is the zkSync token, which experienced a downturn post-airdrop due to widespread liquidation by its holders.
Cryptocurrencies typically witness a price surge post-airdrop, driven by trader excitement, only to experience a retraction soon after. Notcoin’s value skyrocketed to **$0.027** on its debut, followed by a steep 50% fall the next day. In a similar vein, Sei’s value escalated to **$1** post-airdrop in August last year, then plummeted to **$0.09** within weeks. It’s plausible that ZRO might mirror this pattern with a forthcoming dip.
However, it’s not all bleak; many tokens recover robustly after the initial sell-off. Sei, for instance, rebounded from **$0.096** to an all-time high of **$1.15**. Notcoin also witnessed a resurgence, reaching a peak of **$0.030** following its initial decline.
LayerZero stands out as one of this year’s most significant airdrops. Based in Vancouver, the platform operates a cutting-edge technology facilitating data transfer across diverse blockchains. Presently, it supports networks such as Ethereum, Arbitrum, Optimism, Base, and Avalanche, with plans to expand its compatibility. Prominent dApps like Ethena, Stargate, Conflux, and AAVE are leveraging its network.