LayerZero's Purchase of $10 Million in ZRO Tokens: Analysis
summary
LayerZero Labs announced on November 6, 2025 at 17:48 UTC that it had purchased $10 million worth of ZRO tokens from the open market and added them to its balance sheet . This move triggered a 20% surge in the price of ZRO from $1.28 to an intraday high of $1.81, and it is currently stabilizing around $1.745. This purchase was positioned as a strategic assessment of ZRO's undervaluation, reflecting the team's confidence in the protocol's long-term value.
Event Details
Official announcement
LayerZero's official X account (@LayerZero_Core) released a statement: "LayerZero Labs has added $10 million worth of ZRO directly from the open market to its balance sheet. We are experiencing a generational shift in the financial system, and LayerZero is at the heart of this transition to a globally scaled permissionless infrastructure. We at LayerZero Labs believe ZRO is currently one of the most irrationally priced assets in the world." x.com
Fund Flow Analysis
On-chain fund tracking limitations : Despite a comprehensive on-chain analysis, no single transaction directly corresponding to this $10 million purchase was found . This suggests the purchase may have been executed through the following means:
- Over-the-counter (OTC) trading
- Centralized exchange aggregation
- Multiple smaller transactions executed separately
LayerZero's physical wallet :
- Main wallet:
0x8f6449530606a9efddac42e05612427ddeba449c(holds 139,268,421 ZRO) - Secondary wallet:
0x744dbc48d11415ec5cb2f78609dea5e1e738da24(holds 69,549,762 ZRO) - In total , LayerZero controls approximately 250.7 million ZRO (approximately 25% of the total supply, valued at $388.6 million).
Historical Accumulation Pattern : On-chain data shows that LayerZero has been continuously accumulating net ZRO. In September 2025, there was a large inflow of 48.3 million ZRO (worth approximately $72.45 million to $96.6 million), indicating this was part of a larger-scale buyback program. (etherscan)
Market Impact Analysis
Price performance
| index | numerical values | change | illustrate |
|---|---|---|---|
| Current price | $1.745 | +15.86% (24h) | Strong rebound after repurchase announcement |
| Intraday high | $1.86 | +45.3% (vs. daily low) | Strong upward momentum |
| Market capitalization | $194 million | - | Relatively small scale is conducive to price fluctuations |
| 24-hour trading volume | $135 million | surge | Event-driven liquidity increase |
Technical Analysis Key Points
Multi-timeframe momentum :
- 1-hour chart : RSI 65.8, MACD bullish, broke through upper resistance at $1.82.
- 4-hour chart : RSI 65.1, trading volume supports continued upward movement.
- Daily chart : RSI at 52.3 is neutral, still below the SMA50, with key resistance at $1.91.
Key price levels :
- Support levels : $1.63 (daily moving average), $1.43 (strong support)
- Resistance levels : $1.82 (intraday high), $1.91 (50-day SMA), $2.00 (psychological level)
Derivatives Market
Changes in open interest : Total open interest is $70M (24h +31%), with the price increase accompanied by an increase in open interest, confirming bullish sentiment.
Liquidation data : Total liquidation in the last 24 hours was $202K, with short liquidation ($108K) exceeding long liquidation ($93K), supporting price increases.
Strategic significance
Supply dynamics
This $10 million purchase occurred after the large unlock on October 20 (25.71 million ZRO, approximately $44 million), effectively hedging against the selling pressure resulting from the unlock . This is part of LayerZero's $150 million buyback program by 2025, which has already repurchased approximately 50 million ZRO (5% of the total supply).
Market Signals
Management's confidence : The team publicly stated that ZRO is "one of the most irrationally priced assets in the world," and increasing their holdings during a bear market reflects a strong value judgment. (crypto.news)
Fundamental Support : As a full-chain interoperability protocol, LayerZero occupies a core position in the development of multi-chain ecosystems, with $318 million in funding and top-tier investor background.
Trading Outlook
Short-term outlook
- Bullish scenario : A break above the $1.82 resistance level targets $1.91 and $2.00.
- Risk factors : The RSI is approaching overbought territory; a pullback to the $1.63 support level should be monitored.
Long-term considerations
- Reduced supply : Continued buybacks reduce the amount of stock in circulation.
- Ecosystem Development : Growing Demand for Full-Chain Interoperability Supports Token Value
- Unlocking Risk : Monitor the impact of future token unlocking schedules
in conclusion
LayerZero's $10 million purchase of ZRO demonstrates management's strong confidence in the protocol's long-term value. While the specific fund flows are difficult to track due to the OTC nature of the transaction, the market reaction has been positive, and the technical picture shows a short-term bullish trend. Investors should pay attention to whether the key resistance level of $1.82 is broken and the execution of subsequent buyback plans , while also being wary of the risk of a correction due to overheating short-term technical indicators.