LayerZero [ZRO] is up more than 22% in the past 24 hours, leading by gains among all top 100 cryptos by market cap. The main driver of the rally is a 184% uptick in volume to around $145 million.
This uptick in volume is as a result of network activity as confirmed by LayerZero’s Chief Business Officer (CBO), Simonas Baksys. Here is how:
A look into LayerZero’s network activity!
Speaking to John Gillen, Simonas Baksys outlined why LayerZero was among the most performant technology as it connects to most blockchains.
For instance, it controlled about 91.5% of the cross-chain volume in September. Baksys outlined this was measured in two ways, that is, the amount of value transferred across pure blockchains and cross-chain transactions or messages.
So, on any given month, Baksys says they do roughly $10-$15 billion of cross-chain value transfer.
They power some of the biggest asset issuers in the world like PayPal’s PYUSD, Global Dollar Network from Paxos, all Ethena [ENA] and Ether.fi assets, Tether and USDTO.
This is evident as User Application and Omnichain Fungible Tokens (OFTs) contracts have hit a new peak. The former reached 74,383 while OFTs hit 3,443.
Can bulls clear the $2.50 resistance zone?
ZRO was attempting to clear the resistance level at $2.50 which has been in place since June. The Accumulation/Distribution shows traders are buying the token with over 25 million ZRO purchased.
Prior to the ongoing breakout, ZRO was rejected eight times and this could be another one. However, the price has surpassed the level but it needs its weekly candle to close above.
But looking at the Trend Strength Index (TSI), it showed bullish with its reading at 0.75. With that, the next targets are at $3 and above $3.50. Otherwise, the price may dip back below the $2.50 zone.
However, from a bullish perpsective, the altcoin may face difficulties due to a routine monthly unlock in eight days. This creates selling pressure due to an increase in supply.
More than 25.71 million ZRO costing $62.21 million, equivalent to 4.04% of the released supply, will hit the open market on October 20th. Already over 63% of the maximum supply has been released.
Altogether, ZRO remains bullish unless bears at the $2.50 supply zone win the battle against bulls.
Final Summary
- LayerZero rallied 22% in the past 24 hours as the altcoin recovers from mass exodus brought by recent exploits.
- ZRO is attempting to break above a five-month resistance but upcoming unlock could cap the trend.
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