LayerZero Alert: $40M ZRO Token Unlock Threatens Price Collapse - Analyst Warns
LayerZero faces a critical liquidity test as $40 million worth of ZRO tokens prepare to hit the market.
The Unlock Countdown Begins
Massive token releases typically trigger sell pressure—and this $40 million floodgate opening could drown ZRO's current price levels. Early investors and team members holding unlocked tokens often rush to cash out profits, creating a supply shock that markets struggle to absorb.
Historical Precedent Speaks Volumes
Similar token unlock events across crypto have consistently demonstrated one pattern: short-term pain for holders. When more tokens chase the same amount of buying interest, basic economics takes over—and it's rarely pretty.
Market Psychology at Breaking Point
Traders watching the unlock calendar are already positioning for downside. The mere anticipation of increased supply can trigger pre-emptive selling, creating a self-fulfilling prophecy of price decline.
Because nothing says 'decentralized finance' like early investors dumping on retail traders—the classic crypto tradition continues.
What Is LayerZero and Why Is It Such a Big Deal in Crypto?
LayerZero is a cross-chain interoperability protocol that connects over 50 blockchains, enabling seamless asset transfers and communication between networks. It’s designed to power DeFi, NFT, and gaming ecosystems by replacing centralised bridges with secure, efficient on-chain messaging.
(Source – layerzero)
The project’s native token,
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LayerZero
ZRO
$1.74
1.93%LayerZero
ZRO
Price
$1.74
1.93% /24h
Volume in 24h
$37.96M
Price 7d
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, fuels this ecosystem, serving governance, staking, and transaction utility roles. As of now, ZRO trades at $1.73, with market cap NEAR $193M and a total supply capped at 1Bn tokens.
Partnerships with Tether, Avalanche, Polygon, and CIrcle have cemented LayerZero’s place as a key player in the interoperability race, with analysts calling it “the connective tissue of Web3”.
Will the $41M ZRO Crypto Unlock Crash the Price?
The concern around this LayerZero token unlock comes down to basic economics: a surge in supply can weigh on price unless met with equivalent demand. The unlock of 25.7M ZRO tokens, valued at over $41M, represent one of the largest unlocks this quarter, roughly a quarter of circulating supply entering the market in a single event.
Traders on X are split. Some warn of a “liquidity overload” as early investors and ecosystem funds gain access to privously locked tokens, potentially selling for profit. Historically, tokens like sui and APT have seen drops of 15-30% post-unlock.
Yet, others are more optimistic. They point to LayerZero’s real-world adoption and previous 50M token buybacks as indicator of strong protocol health. In short, even if volatility spikes, the project’s long-term demand may absorb short-term selling.
LayerZero Foundation executed a buyback of 50 million ZRO from early investors, representing 5% of token supply. pic.twitter.com/lai9ZMkgkA
— LayerZero (@LayerZero_Core) September 22, 2025
Moreover, LayerZero’s unlock calendar is public and predictable, which allows the market to price in future releases. Transparency and consistent communication could help steady sentiment and attract opportunistic buyers once the dust settles.
What Does the Technicals Say About LayerZero’s Price Pre Unlock?
On daily time frame we can see that ZRO price have reclaimed the $1.63 support line after the October 10, 2025 flash crash. Furthermore price have been consolidating under the resistance of 200 EMA and SMA lines forming big descending triangle pattern. This creates a resistance around $2.2 price level.
On 4 hour time frame we can see that RSI indicator is creating hidden bullish divergence and MACD already flipped positive. A parallel channel suggest that from here price can push for $2.5 acting as sell the news event. We can see that past couple of days volume is over the average which usually FORM a bottom or top.
If ZRO price manage to regain the $2.5 region it means the next resistance is at $3.5 which will leave traders with hefty 100% gains.
