The LAYER token (LayerAI) recorded one of the strongest crashes during this month yesterday, losing over 30% of its value within a few hours. Some considered it an opportunity, while others saw it as a failed project. But the truth lies in the details:
The main reason for this decline is not a technical crash or a problem with the project itself, but rather the end of the unlock period for a large number of tokens, which caused intense selling pressure from early investors.
Does this mean it is a failed token?
Not necessarily. Strong projects often go through periods of pressure due to economic aspects rather than technical ones. The important question here is: Does the project still provide real value? In the case of LAYER, its project in artificial intelligence and data is still emerging but promising.
And because some compared what happened to OM (MANTRA), let’s clarify the difference:
OM also experienced a strong decline recently, but it is still in a prolonged correction and has not entered a new uptrend.
The difference is that OM today has institutional adoption and relatively stronger technical indicators, while LAYER is still new in the market and subject to early distribution pressures.
Summary:
LAYER's project is not finished yet, but it is now in the "sifting" phase, and those who cannot handle fluctuations may not find it a suitable opportunity at the moment. As for OM, it is going through a calming phase after a strong rise, but it has not yet proven its return.
