LayerZero's ZRO token rallied to a six-month high of $2.14 after rebounding from $1.70. At the time of reporting, ZRO traded near $2.03, up 15% on daily charts.
The surge followed renewed attention to LayerZero's cross-chain activity. Data showed LayerZero accounted for 91.6% of transfer volume across six protocols over a 30-day period, totaling $12.4 billion. The protocol outperformed competitors including Chainlink, Wormhole, and Socket, which collectively held 8.4% of the market share.
A single day saw $4 billion in LayerZero transfers, though much of this activity concentrated in one transaction. One wallet transferred 4.46 billion WPAY tokens, valued at $3.6 billion, from Polygon to Arc. This transfer represented 44% of Wirex's WPAY holdings and approximately 90% of the daily transfer record.
Exchange Inflows Signal Potential Selling Pressure
As ZRO gained, notable fund movements emerged. Strategic partners and large holders transferred 8 million ZRO to Coinbase Prime, raising questions about potential sales, though transfers alone do not confirm selling activity.
Additionally, a LayerZero-linked wallet deposited 1.7 million ZRO to Binance only one day after receiving those tokens, indicating a rapid turnaround that suggested possible liquidation.
Exchange inflow data showed a consistent pattern, with more tokens flowing into exchanges than leaving over four consecutive days. On October 3rd, Spot Netflow reached $9.1 million, with continued positive inflow at approximately $1.45 million at the time of reporting.
Price Momentum and Support Levels
LayerZero's technical structure showed higher lows forming along rising support, supporting a bullish outlook. The Relative Strength Index reached approximately 79, entering overbought territory and suggesting strong buyer momentum.
The $2 level served as the immediate support to maintain. If buying pressure continues, ZRO could target $2.20, with $2.50 as a potential medium-term objective. A break below $2 could see the token revisit $1.70 support.
Exchange inflows represented a key risk factor, as potential sales tied to deposit activity could limit upside momentum.
