Can it keep rising? | $ZRO
Potential upward drivers:
1. Expansion of omnichain interoperability: As more projects adopt LayerZero, the demand for ZRO could grow.
2. Community participation: Active governance and staking can attract committed holders.
3. Volume and technical momentum: The recent increase and institutional support reflected in volume may maintain the upward momentum.
Cautionary factors:
High volatility: The price has been up to 73% below its all-time high, indicating susceptibility to corrections.
Future supply: With a significant portion of tokens still under vesting, future releases could create selling pressure.
Increasing competition: Other interoperability protocols may reduce the appeal of LayerZero.
ZRO is in a reactivation period supported by increasing volume and utility of the protocol. The adoption of LayerZero as omnichain infrastructure, combined with the role of the token in governance, positions it well for continued growth. However, its history of high volatility and the tokenomic structure with future releases require a cautious strategy.
