Market data indicates that the liquid restaking protocol’s Renzo Token (REZ) has experienced a significant downturn over the past 24 hours, with this market drop coming up shortly after the Binance listing.
Renzo Token’s debut on the market was marked by a market capitalization of $289 million. However, as of the latest update, REZ is valued at $0.1444, with a market cap of $169 million. This marks a staggering 43.4% decrease in value over the last day despite its volume hitting $396 million.
REZ price – May 1 | Source: Santiment
The token, serving as a strategy manager for EigenLayer, made its listing debut on Binance on April 30, as disclosed by crypto.news in a recent report. However, this positive development preceded a significant loss of nearly half of its value.
You might also like: Nigerian Central Bank halts fintech new accounts to curb crypto trading
Notably, REZ’s price decline coincided with the opening of Renzo Protocol’s token airdrop on Tuesday, just an hour before its Binance listing. The airdrop distributed 7% of REZ’s maximum supply to over 100,000 eligible users, including those who had accumulated a minimum of 360 ezPoints before the snapshot on April 26.
Get ready for $REZ on April 30th 1⃣ View eligibility starting at 10:30 UTC2⃣Claim Page launch at 11:00 UTC3⃣@binance listing live at 12:00 UTCSeason 1 Stats👩🌾Number of eligible users: ~103.5k#⃣Total $REZ Allocation: 7%The ONLY official claim page is accessible from👉…
— Renzo (@RenzoProtocol) April 30, 2024
Renzo Token’s disappointing performance on its first day of trading follows the price depeg of its EZETH token on April 24, coinciding with the conclusion of the Season 1 airdrop. Notably, EZETH briefly dropped to $688 on Uniswap, essentially losing parity with Ethereum. This resulted in multiple liquidations.
Renzo ETH depegged yesterday causing a massive amount of liquidations in ezETH/WETH pools.For example, 115 liquidations happened on @GearboxProtocol totaling around $3.5M in liquidated assets.OEV is lost every time this happens.(Dune creds @Sohwak: https://t.co/xRnrC3RhZM) pic.twitter.com/WW76wyYXSu
— bobby🥚 (@bobbay_b) April 25, 2024
This unfavorable occurrence triggered bearish sentiments across the board, with market participants swiftly selling off their allocations to hedge against any steeper drop in REZ’s value. In addition, the turbulence observed in the broader market has further exacerbated REZ’s downturn.
Read more: Crypto community reacts to Changpeng Zhao’s 4-month sentence
