LayerZero (ZRO) price rallied after the highly successful airdrop. It jumped by almost 10%, reaching a high of $4.40. Its valuation was larger than many well-known brands like Flow, Ethena, Quant, and Ethereum Name Service.
The token rallied even after the developers insisted that all claimants must pay 10 cents to support its ecosystem. The developers hope that the small fee will help it raise $18 million, which will go to the Protocol Guild.
It also rallied after several tier-1 exchanges like OKX, ByBit, and HTX started offering trading in LayerZero in their platforms.
New Listing ALERT 🚨 📈 $ZRO/USDT @LayerZero_Labs Spot Trading is now open!Trade now: https://t.co/ngvKx9mr8f pic.twitter.com/zSZFdOf4Lc
— OKX (@okx) June 20, 2024
However, history suggests that the token’s price will pull back in the coming days as many airdrop recipients sell their tokens. Just this week, zkSync token crashed after its airdrop as most of its holders liquidated their positions.
Most cryptocurrency prices rise shortly after the airdrop because of the hype among traders and then pullback in the next few days. In May, Notcoin’s price went parabolic and reached a high of $0.027 on its first day and then crashed by over 50% on the following day.
Similarly, Sei jumped to 1 after its airdrop in August last year and then crashed to $0.09 within a few weeks. Therefore, there is a likelihood that the ZRO price will follow the same trajectory by dropping in the next few days.
Most tokens bounce back after initial sell-off
On the positive side, most of these tokens tend to bounce back after the initial jump. After falling to $0.096, Sei eventually bounced back and reached a record high of $1.15. Similarly, Notcoin surged to a record high of $0.030 after the initial plunge.
LayerZero has become one of the biggest airdrops this year. Headquartered in Vancouver, the platform runs a technology that enables applications to move data across multiple blockchains.
It is currently compatible with chains like Ethereum, Arbitrum, Optimism, Base, and Avalanche and the developers hope to add more in the coming months. Some of the dApps using the network are Ethena, Stargate, Conflux, and AAVE.