Why the VC unlock in LA may present a bottom-fishing opportunity?

The VC token unlock of Lagrange ($LA ) is seen as a short-term negative, but combined with its technical background and market dynamics, it may actually create mid-to-long-term bottom-fishing opportunities for the following reasons:

1. Market expectations have already digested the negative impact

According to historical data, 70% of projects experience a price decline 20 days before the unlock announcement, and after the official unlock, they may rebound due to the 'bad news being fully priced in'. LA has already dropped by 30% due to selling pressure from the airdrop in the early stages of its launch, and the negative impact of the VC unlock may have already been partially digested.

2. Fundamental support and expectations for technological implementation

As a ZK cross-chain proof protocol, LA has integrated EigenLayer AVS and obtained endorsements from top VCs like Polychain. Once the mainnet is launched, if there is an explosion in zkML demand (such as in AI and RWA scenarios), the utility of the token will significantly increase. Currently, the testnet transaction volume has surpassed 100 million, proving the feasibility of the technology.

3. Deflationary mechanism to hedge selling pressure

The protocol allocates 20% of its revenue for repurchasing and burning LA, with an annual deflation rate potentially reaching 5%-8%. Additionally, 35% of the circulating supply is staked, which can offset the selling pressure from the VC unlock in the long term. If the team releases favorable ecological cooperation (such as integration with Arbitrum) after the unlock, it may reverse market sentiment.

Conclusion: The VC unlock of $LA may be a 'golden pit', but it is necessary to combine on-chain data (such as whale holding changes) and ecological progress to choose the right timing for positioning, avoiding blind chasing of price increases or panic selling. #Lagrange @Lagrange Official