LayerZero’s ZRO token has dropped 12% in a 24-hour period amid renewed market-wide selling pressure. The decline follows a recent 114% recovery and coincides with a monthly token unlock event releasing $52.25 million in new supply. On-chain data shows a significant drop in holder count and market capitalization, though spot traders have accumulated over $2.67 million of the asset in recent days.
The native token of LayerZero, ZRO, has lost momentum after a strong recovery earlier this year. The token fell 12% in 24 hours, reflecting renewed selling pressure across the broader cryptocurrency market.
Following a peak around October 6, ZRO entered a prolonged bearish phase, declining 54% over twelve weeks. A decisive six-week rally that ended February 16 saw the token rebound by 114%, fully reclaiming those losses.
However, the market character has changed again over the past two weeks, with price falling 10%. This shift suggests distribution, with participants positioning defensively. Fundamentals are reinforcing this technical weakness.
CoinMarketCap data shows approximately 32.6 million ZRO tokens, valued at $52.25 million, unlock on the 20th of each month. The latest unlock occurred on February 20, amplifying downside pressure in a fragile sentiment environment.
On-chain metrics confirm an exit trend, with the holder count declining to roughly 1.01 million addresses. Market capitalization has fallen 8.78%, representing a $109.44 million capital flight in less than a month.
Community Sentiment data shows bullish conviction dropped sharply on February 20, falling from 88% to 75%. Historically, such confidence drawdowns correlate with extended price weakness as speculative demand cools.
Despite the broader weakness, spot traders appear to be absorbing supply. CoinGlass data indicated net spot inflows reached $2.67 million in just over 48 hours. When price declines alongside net accumulation, it often signals that a segment of market participants views current levels as discounted.
ZRO now sits at a crossroads, with unlock-driven supply and weakening sentiment tilting the structure bearish. Yet, steady spot accumulation suggests not all investors have abandoned the asset.
