LayerZero's token is facing a notable downturn despite signs of institutional interest, primarily driven by forced liquidations linked to Alameda Research's bankruptcy. The study highlights an alarming trend: the token has dropped nearly 10% over the past week, raising concerns among investors.
Current Trading Status
Currently trading at $1.78, LayerZero's token has experienced a 9.97% decline, reflecting the impact of significant sell-offs. On March 31, the announcement of a new verifier network by major payment processors, built on LayerZero, was seen as a positive development, indicating strong institutional backing.
Impact of Alameda Research Liquidation
However, the situation took a turn when the bankrupt estate of Alameda Research sold off 793 million ZRO tokens to market maker Wintermute. This massive liquidation has created overwhelming selling pressure, overshadowing the recent positive news and contributing to the token's decline.
In a significant turn of events, Terraform Labs has filed for bankruptcy, a move that follows the turmoil in the crypto market highlighted by LayerZero's recent struggles. For more details, see bankruptcy filing.
