The price of LayerZero (ZRO) increased following the extremely profitable airdrop.
It increased by over 10% and peaked at $4.40. Its valuation exceeded that of other well-known companies, including Ethereum Name Service, Ethena, Flow, and Quant.
Even after the developers mandated that each claimant pay 10 cents to sustain the ecosystem, the token continued to rise in value. The modest cost is intended to assist the developers in raising $18 million, which will be donated to the Protocol Guild.
It also rebounded after a number of tier-1 exchanges began to offer LayerZero trading on their platforms, including OKX, ByBit, and HTX. However, history suggests that the token’s price will pull back in the coming days as many airdrop recipients sell their tokens.
The majority of zkSync token holders liquidated their positions following the airdrop, causing the token to fall only this week. Due to trader excitement, most cryptocurrency values spiked just after the airdrop and subsequently declined over the following several days.
The price of Notcoin saw a parabolic rise in May, peaking at $0.027 on its first day and then plunging by more than 50% the next day. Similarly, Sei surged to 1 following its airdrop in August last year and then sank to $0.09 within a few weeks. As a result, it is likely that in the coming days, the price of ZRO will decline on the same trajectory.
Most tokens recover after initial sell-off
Positively, after their first spike, the majority of these tokens tend to recover. Sei finally recovered and achieved a record high of $1.15 after plunging to $0.096. Similarly, Notcoin recovered from its initial decline and reached a record high of $0.030.
One of the largest airdrops of the year so far is LayerZero. The platform, which has its headquarters in Vancouver, uses a technology that lets apps transfer data between different blockchains.
Currently, it works with chains including Ethereum, Arbitrum, Base, Avalanche, and Optimism. The developers plan to add more in the upcoming months. Ethena, Stargate, Conflux, and AAVE are among the dApps that use the network.
