Will ZRO Bounce Back After Arbitrum’s Massive Revenue Surge?

• Leading exchanges Binance and Upbit have listed ZRO.
• Arbitrum observed a 16,5000% surge in its daily revenue.

The anticipated airdrop of LayerZero’s ZRO token launched recently, with listings on major exchanges including Binance, Bitfinex, OKX, ByBit, and Bitget. These listings significantly boosted the token’s liquidity and visibility, leading to an initial price surge reaching $4.80.

However, the token’s price saw a decline following the introduction of a new ‘Proof-of-Donation‘ mechanism aimed at tax reduction, sparking community debate. It subsequently hit an all-time low of $3.12. As of the latest update, the price has decreased by 22.47% over 24 hours to $3.16. The market capitalization remains at $789 million with a trading volume of $666 million. The token has a total supply of one billion, with a circulating supply currently at 250 million. The fully diluted valuation (FDV) of LayerZero (ZRO) stands at $3.21 billion.

In parallel, Arbitrum, a layer two technology, saw a significant increase in fees post-LayerZero’s token launch, boosting its daily revenue by a staggering 16,500% to $3.43 million. This marks a 16,680% surge compared to the previous day, highlighting the impact of LayerZero’s activity on the broader blockchain ecosystem.

Will ZRO Bulls Come Back?

The daily Relative Strength Index (RSI) stands around 31, indicating significant selling pressure. Looking over the 24-hour price chart, ZRO’s initial resistance is around the $3.26 range. If the bulls maintain the upward momentum, the next key resistance level can be at $3.37 and further gains carry the price to the $3.40-$3.50 range.

Conversely, if the bears continue to run ahead of the bulls, ZRO’s price could dive to $3.10. Further declines may push the token’s price to a support level of $3. If the bears continue to dominate the price, they could fall into the $2 range.

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