The tokenization boom and company positioning has started to show, and LayerZero’s (ZRO) latest Layer-1 chain, Zero, is just one of the telltale signs.
The protocol, which started as an interoperability layer, upped its bets and launched its high-performance chain, Zero, backed by leading institutions in global financial markets including Citadel Securities, DTCC, ICE and Ark Invest.
In fact, Cathie Wood from Ark Invest was appointed as an advisor and she fully supported the LayerZero team. She added,
“I couldn’t imagine a better opportunity to join an advisory board for the first time in a long time. Finance is evolving on-chain and I believe LayerZero will be one of the leading innovation platforms supporting this multi-decade shift.”
ZRO explodes 30%, but will it maintain the gains?
As companies position themselves for tokenized asset workflows, LayerZero is now on the institutional radar. And the retail market jumped on the update, as the protocol token illustrates ZRO explosive pump.
Source: ZRO/USDT, TradingView
ZRO jumped over 30%, from $1.8 to $2.3. The latest rebound helped extend the gains of February’s rally to 81%.
AMBCrypto had foreseen the last bounce; However, as of press time, a period of reflection cannot be canceled despite the extremely optimistic updates.
Notably, the rally reached the $2.4 resistance level in the second half of 2025, suggesting that this level could attract sellers who held throughout the fourth quarter market rout. So, investors wanting to cut their breakeven losses could do so at this level, calling for caution.
Furthermore, the RSI was close to oversold territory, suggesting that bullish momentum may be limited ahead of a possible reversal. If so, a retest of $1.8 could provide further buying opportunities.
But the bearish outlook could be invalidated if the price breaks the 2025 hurdle and turns $2.5 into support. In such a scenario, the next upside target is $3.0, with a potential gain of 25% if reached.
It is interesting to note that some analysts expected altcoin will soon join the top 20 crypto assets.
Speculative interest in ZRO is exploding, but…
Buying pressure after the update was also strong in the derivatives market. Speculative interest nearly doubled, with open interest increasing from $84 million to over $154 million in the last 24 hours.
Source: Bike
However, the net change in foreign exchange position also hit a five-month high of $7 million, last seen before the October crash.
This means that selling pressure also increased as holders scrambled to sell during the rally. If the decline deepens, the $2.4 level could become a hurdle for the bulls for some time.
Source: Glassnode
Final Thoughts
- LayerZero Unveiled New Performance L-1 Channel, Zero, and Added Cathie Wood to Advisory Board
- ZRO extended its recovery to 80% after revealing the main institutions supporting the company
