Analyst Raises Red Flags for LayerZero: $40M ZRO Release Could Wreck ZRO Value – Here’s the Reason
The ZRO price is currently facing significant market attention as LayerZero crypto gears up for one of its most pivotal token unlocks, set to release over 24.7M ZRO tokens (approximately valued at ~$41M) into circulation on October 20, 2025. Given the already fragile state of crypto markets, experts caution that this could instigate long-term price fluctuations, possibly resulting in a sharp drop in ZRO’s value.
This unlock constitutes nearly 23% of the existing circulating supply, heightening concerns of a major supply shock that could inundate buy-side liquidity if substantial holders decide to sell.
What Is LayerZero and Why Is It Important in the Crypto Landscape?
LayerZero is an interoperability network that facilitates cross-chain connections among over 50 blockchains, allowing for smooth asset transfers and communication across networks. It aims to enhance DeFi, DIGITAL COLLECTIBLE, and gaming ecosystems by replacing centralized bridges with safe, efficient on-chain messaging.
(Source – layerzero)
The foundation’s native token,
LayerZero
1.93%
LayerZero
ZRO
Price
$1.74
1.93% /24h
Volume in 24h
$37.96M
Price 7d
, is the backbone of this ecosystem, fulfilling roles in governance, staking, and transaction utility. Currently, ZRO is trading at $1.73, with a crypto market cap close to $193M and a total circulating supply limited to 1Bn tokens.
Strategic alliance with Tether, Avalanche, Polygon, and Circle has solidified LayerZero’s status as a crucial participant in the interoperability landscape, with experts describing it as “the connective tissue of Web3.”
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Will the $41M ZRO Crypto Unlock Impact the Price?
The anxiety surrounding this LayerZero token unlock revolves around fundamental economic principles: a rise in supply can pressure prices unless matched by sufficient buyer interest. The release of 25.7M ZRO tokens, valued at more than $41M, represents one of the largest unlocks this quarter, introducing approximately a quarter of the supply to the trading market in a single occasion.
(Source – cryptorank)
Traders on X are divided. Some caution against a “liquidity flood” as early backers and ecosystem funds gain access to previously locked tokens, possibly selling for profit. Historically, tokens like SUI and APT have experienced declines of 15-30% following unlocks.
Conversely, others are more hopeful. They highlight LayerZero’s real-world usage and recent 50M crypto token buybacks as evidence of robust protocol health. In summary, even if market fluctuation increases, the project’s long-term buyer interest could mitigate short-term selling pressures.
LayerZero Foundation executed a buyback of 50 million ZRO from early investors, representing 5% of coin token supply. pic.twitter.com/lai9ZMkgkA
— LayerZero (@LayerZero_Core) September 22, 2025
Additionally, LayerZero’s unlock schedule is transparent and foreseeable, allowing the market to anticipate future releases. Openness and continual communication could help stabilize sentiment and lure opportunistic buyers once the situation stabilizes.
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What Do the Technical Indicators Suggest About LayerZero’s Price Ahead of the Unlock?
On the daily timeframe, it is evident that the ZRO price has regained the $1.63 support level following the flash crash on October 10, 2025. Moreover, the price has been consolidating just below the barrier level of the 200 EMA and SMA lines, forming a substantial descending triangle pattern, which establishes resistance around the $2.2 price point.
(Source – TradingView)
On the 4-hour timeframe, the RSI indicator shows hidden bullish divergence, and the MACD has already turned positive. A parallel channel indicates that the price might push toward $2.5 as a sell-the-news event. Furthermore, trading volume over the past few days has surpassed the average, typically indicating a bottom or top formation.
(Source – TradingView)
If ZRO prices manage to reach the $2.5 area, it would imply that the next price ceiling lies at $3.5, offering traders substantial potential gains of 100%.
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Key Takeaways
The post Analyst Signals Alarm For LayerZero: $40M ZRO Unlock Could Devastate ZRO Price – Here’s Why appeared first on 99Bitcoins.
