LayerZero Sets Six-Month Record with 91.6% Transfer Share

The LayerZero ZRO token rebounded from a drop to $1.70, reaching a six-month high of $2.14 and trading at $2.03, which is 15% higher compared to the previous day. The resurgence of LayerZero is linked to increased activity in its cross-chain market, attracting investor attention. According to Bitblaze data, LayerZero accounts for 91.6% of the total transfer volume across six protocols over the past 30 days, amounting to $12.4 billion. In contrast, protocols like Chainlink, Wormhole, and Socket shared the remaining 8.4%.

A significant portion of the volume came to LayerZero thanks to a record $4 billion in transfers in a single day. However, the main volume was provided by one wallet, which transferred 4.46 billion WPAY tokens worth $3.6 billion from Polygon to Arc, accounting for 44% of all WPAY Wirex tokens and approximately 90% of the daily record. Meanwhile, the activity of major holders raises some concerns. Addresses associated with LayerZero's strategic partners transferred 8 million ZRO to Coinbase Prime. While such movements may indicate a planned sale, they could also signify a need for liquidity or storage. Another wallet linked to LayerZero made a deposit of 1.7 million ZRO, amounting to $3.6 million, with the tokens received just a day prior. This rapid turnover may indicate an intention to sell.

Nevertheless, CoinGlass data showed that the net token flow in the spot market for LayerZero remained positive for four consecutive days. On October 3, the net flow was $9.1 million and remained positive at around $1.45 million at the time of writing. This means more tokens are entering the market than exiting, increasing the supply for potential sales. Whether this will limit the token's growth depends on the intentions of the holders. LayerZero's price structure appears bullish, with higher lows forming along an ascending support. The Relative Strength Index (RSI) confirms this trend, rising to levels around 79, firmly placing it in the overbought zone. If buying interest persists, LayerZero may hold at $2 and aim for $2.20, with a medium-term target of $2.50. However, increased inflows to exchanges could complicate this path if deposits eventually lead to a sell-off. A drop below $2 could refocus attention on the $1.70 support.