LayerZero is making waves in the blockchain space, despite recent slowdowns in farming activities. With a Fully Diluted Valuation (FDV) of under $3 billion, LayerZero $ZRO boasts over 10 times the daily cross-chain message traffic compared to its closest competitors, Wormhole and Axelar Network.
This significant discrepancy in traction versus valuation highlights LayerZero’s potential, especially as it trades within a similar range as its peers.
despite all the heat @LayerZero_Labs gets from the airdrop fiasco + "proof of donation" drama – i am still fairly convinced that $ZRO at the current level of <3bn FDV is a clear bid
a) a weak argument would be that the previous round is raised by 3bn FDV led by @a16z and other… pic.twitter.com/Ende7N7l6d
— Cody (@0xhopydoc) June 25, 2024
Currently, LayerZero has integrated with more than 80 chains and over 54,000 applications, facilitating upwards of 40,000 daily transactions. In stark contrast, Wormhole and Axelar average only 4,000 daily messages. This disparity underscores LayerZero’s superior traction in the interoperability space.
On-chain data from iCrypto.ai reveals substantial accumulation of $ZRO by a whale, potentially linked to Wintermute. The wallet 0xaa7c began accumulating $ZRO five days ago, amassing 262,412 $ZRO (approximately $824,460) at an average price of $3.14.
This holding now represents a significant portion of the wallet’s portfolio. Moreover, six days ago, the same wallet transferred $200,000 worth of $LINK to Wintermute’s address.
🐳 Whale Accumulates Massive $ZRO, Potentially Related to #Wintermute 😎
Data from https://t.co/kFF8LDumzs shows that wallet 0xaa7c (https://t.co/8wu1Yl2tPN) started accumulating $ZRO 5 days ago. 🤔
As of now, the wallet has bought 262,412 $ZRO ($824,460) at an average price of… https://t.co/BRxDJe1QXr pic.twitter.com/bOQ4uSxs4B
— iCrypto | Sentiment & On-chain Analysis (@iCryptoAI) June 26, 2024
Exchange Deposits Of $ZRO Becomes More Pronounced, With Significant Outflows From Long-term Holders
Additionally, Amber Group has recently deposited 500,000 $ZRO (around $1.38 million) to Binance. This comes after receiving 5.69 million $ZRO from LayerZero’s contract, distributing a portion to various exchanges including Bifmex, Binance, Kucoin, and Bitget.
2 hrs ago, Amber Group (0x4e43) deposited 500K $ZRO ~ $1.38M to #Binance
6 days ago, Amber Group received 5.69M $ZRO from the project's contract. After that:
1. Transferred 500K $ZRO to wallet 0x50c3 and it was desperately deposited onto CEXes like Bifmex, Binance, Kucoin, and… pic.twitter.com/Ye7lcPkoTa
— iCrypto | Sentiment & On-chain Analysis (@iCryptoAI) June 26, 2024
The trend of depositing $ZRO onto centralized exchanges (CEXes) has become more pronounced, with significant outflows from long-term holders. Despite this, the project’s fundamentals remain strong, making it an attractive prospect for investors.
According to Cody (@0xhopydoc), with LayerZero’s FDV below $3 billion, this price level is deemed reasonable for buying in. Comparing LayerZero to Wormhole and Axelar, he emphasizes the project’s substantial potential at its current valuation.
As LayerZero continues to outpace its competitors in cross-chain transactions, its market position appears robust, suggesting now might be an opportune time to invest.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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