LayerZero (ZRO) has become one of the first altcoins to bounce back during the market correction. The token has posted green numbers despite last month’s controversial token airdrop. As a result, investors and market observers remain bullish about ZRO’s long-term performance.
From ZRO to market hero
In delayed June, omnichain interoperability protocol LayerZero launched its much-anticipated ZRO token. The launch, which included an airdrop of tokens for protocol users, was met with negative reaction from the cryptocurrency community.
Users have viewed the airdrop donation submission mechanism as a slap in the face to the community. Minutes before the launch, the LayerZero Foundation announced that a modern “Proof-of-Donation” donation submission mechanism will be used for those who wish to receive their token allocation.
The mechanism required users to donate $0.1 in USDC, USDT, or ETH for each token allocated. Donations would go directly to the Protocol Guild, a collective funding mechanism for Ethereum developers.
LayerZero was met with negative reaction to this measure, with many community members stating that the project was “milking” their supporters and lacking proper communication. As a result, the token saw a 38% drop after launch.
The ZRO share price fell from an all-time high (ATH) of $4.57 to just $2.83. The pullback continued, reaching an all-time low (ATL) of $2.48 a week after the launch.
The token has since recovered 53%. ZRO’s upward trajectory began last week when Bitcoin (BTC) reclaimed the $60,000 support zone. The token moved from ATL to a two-week high of $4.2.
However, the LayerZero token followed the rest of the market in a retracement. BTC performance dragged ZRO back to the $2.75 level earlier today, but it has rebounded by over 20% in the past few hours.
At the time of writing, ZRO is one of the few altcoins to register green numbers on multiple timeframes. Furthermore, the protocol token is showing double-digit gains on the weekly and biweekly timeframes, with price increases of 40.2% and 22.1%.
Investors bullish about LayerZero
Following this performance, investors and market observers expressed bullish sentiment towards the token. Some traders provide that ZRO “held up relatively well during the decline” and is now “recovering very strongly.”
Crypto trader CryptoKnight illuminated ZRO bounces and suggests the token could hit $5 in the near term. Similarly, SpiderCrypto believes ZRO will hit $10 by the end of the year. For a market observer, LayerZero is “the best infrastructure company for those who believe in the future of multichain.”
It seems that users still trust the protocol despite the launch mishap. Some investors to consider it’s one of the “cleanest brands around,” with a token that’s “not a hard sell to people with a little FOMO.”
LayerZero Labs recently announced its integration with Flare, a data-centric blockchain, to allow Flare developers to connect to 75 other networks. According to the post, the integration will connect the blockchain to 50,000 dApps and provide access to “a huge number of new users and liquidity sources.”
At the time of writing, ZRO shares are trading at $3.81, up 21% in the last 24 hours.
Featured image from Unsplash.com, chart from TradingView.com
