Just a few days ago, LAYER was on fire — one of the top-performing DeFi altcoins with over 15x growth this year alone. But then, in one brutal red candle, the price dropped from $3.43 to $1.8

What happened? Was it just a healthy correction, or a sign of deeper problems? Let’s unpack it.

1. Classic: Profit-Taking After a Parabolic Rally

LAYER went vertical. From $0.20 to $3.43 — that’s over +1600%. Early buyers (IDO participants, farmers, insiders) began locking in profits. One big market sell order — and with thin order books, the price collapsed quickly.

2. Whale Activity: Spot Dump + Short Position

Just before the dump, a whale transferred 6.9M LAYER to Binance — and shortly after, reportedly opened a large short position on futures. The result? A perfect storm: dump the price and profit on the downside.

3. Unlocking Risk: 27M Tokens Set to Unlock

On May 11, over 13% of LAYER’s total circulating supply is scheduled to unlock. These tokens will go to team members, funds, and possibly market makers. The market appears to be pricing in this upcoming sell pressure in advance.

4. Panic and Liquidations

The sharp fall triggered a wave of liquidations, especially among traders using leverage. Daily trading volume surged to over $140M — a clear sign that the retail crowd got caught in the flush.

What’s Next? Two Scenarios

  • Bullish case: The $1.5–$1.8 zone holds, we see accumulation, and a recovery bounce to $2.4–$2.8.

  • Bearish case: Unlocked tokens flood the market, pushing price toward $1.2 or lower.

Is It Worth Buying Now?

If you missed the initial rally, don’t rush to catch the falling knife. The project is interesting, yes — but the market euphoria has cooled off. Watch for volume, whale behavior, and news around the unlock.



P.S. Do you think LAYER can bounce back or was that its final moonshot? Drop your thoughts in the comments — let’s figure it out together!


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