LayerZero rebounded sharply over the past 24 hours, climbing 11.5% to trade around $2.118 after falling to $1.7 two days prior. The token briefly reached $2.19 before pulling back, supported by a 45% surge in spot trading volume.
The recovery follows renewed attention to LayerZero's cross-chain transfer activity. Exchange data shows a notable shift in token flows, with spot netflow turning negative at -$1.03 million over the past 24 hours, down 156% from $1.4 million three days earlier. The negative netflow indicates more tokens are leaving exchanges than entering them, suggesting reduced selling pressure after six days of consecutive inflows.
Protocol fundamentals strengthen
LayerZero's network fees have more than doubled over the past 30 days, rising from $147,000 to $301,000. The increase reflects growing demand for the protocol's cross-chain services.
Token unlock concerns persist
Despite near-term momentum, investors have expressed concern about upcoming token unlocks scheduled for two weeks out, which will release an additional $50 million in tokens. Analysts note that these unlocks could introduce selling pressure and complicate the medium-term outlook.
Technical picture
LayerZero is forming higher lows on the daily chart, with momentum indicators showing strength over the past two weeks. If the token holds above $2, technical analysts suggest it could target $2.2 and above. A failure to close above $2.2 could see the token retreat to $1.7.
