LAYER Crashes 45% In A Few Hours: What Happened?

The significant price drop of Solayer's LAYER token today can be attributed to several interrelated factors:

1. Token Unlock Event: An upcoming unlock of 26.5 million LAYER tokens on May 11 has raised concerns about potential market oversupply, leading to fears of intensified selling pressure unless sentiment improves before the release.

2. Liquidity Issues and Whale Activity: The market's thin liquidity has been exacerbated by large sell-offs from significant holders, triggering liquidation cascades and sparking panic among investors.

3. Allegations of Insider Manipulation: There are growing concerns about potential insider manipulation, with allegations suggesting that large holders may have orchestrated a calculated dump of LAYER ahead of the unlock.

These combined factors have led to a sharp decline in LAYER's price, highlighting the importance of monitoring upcoming events and market sentiment for potential recovery or further downturns.