ZRO token takes the lead in market declines dropping by 14

Interoperability pioneer LayerZero has experienced a significant decrease in the value of its native token, ZRO, which has plunged by 14%, making it the top loser in the cryptocurrency market today.
At the time of this writing, ZRO is being traded at $2.68, marking a 13% decrease in the past 24 hours, according to CoinMarketCap. During this same time frame, the token’s trading volume has dropped by 41% to $146 million.
Furthermore, the market capitalization of LayerZero’s cryptocurrency assets has fallen below $700 million, now standing at $670.8 million.
LayerZero is a fully connected mesh network that allows smart contracts deployed across multiple blockchains to interact with one another. This technology, known as cross-chain interoperability, is considered a significant solution for connecting value across isolated decentralized networks.
The recent plunge in ZRO’s price coincides with a widespread sell-off in the cryptocurrency industry, with many tokens experiencing double-digit losses.
For example, Bitcoin has fallen below the critical support level of $63,000, and the overall market cap of all tokens has decreased by 3.5% in the last 24 hours to $2.27 trillion.
Furthermore, the price drop also follows user dissatisfaction with LayerZero’s proof-of-donation mechanism during its airdrop. Those who claimed the airdrop were required to donate $0.1 to the Protocol Guild to receive their tokens, an unconventional approach that faced criticism.
In addition, some users have reported not receiving their token allocations, causing further dissatisfaction. In response, the developers have launched a platform for users to appeal and correct their allocations.
Moreover, the decline comes as some ZRO recipients have sold off their positions. Recently, many recipients of the zkSync airdrop similarly sold their tokens following the distribution.
The broader market context has also contributed to ZRO’s decline, as all of the top 100 cryptocurrencies have experienced losses in the past 24 hours.
Some of the leading decliners include ENS (-10%), WIF (-13%), JASMY (-10%), and FLOKI (-10.7%), among others that have suffered losses between 5% and 10%.
The Fear and Greed Index has shifted to the neutral zone and currently stands at 51.
The future direction of LayerZero’s price will largely depend on the overall performance of the cryptocurrency market in the coming weeks. If Bitcoin continues on its bearish trend and falls below $56,527, its lowest point in May, then ZRO is likely to continue its downward trend.
Altcoins often closely follow Bitcoin’s movements, surging to multi-year or all-time highs when Bitcoin reaches new records and retreating as Bitcoin loses momentum.