Latest LayerZero (ZRO) News Update

Deep Dive

1. @CryptoBull_360: Stargate merger finalizes bullish

“Stargate ($STG) officially joins forces with LayerZero […] paid in ZRO tokens.”
– @CryptoBull_360 (12.4K followers · 48K impressions · 2025-08-24 01:26 UTC)
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What this means: Bullish for ZRO as the $110M acquisition redirects Stargate’s revenue to ZRO buybacks, tightening supply. However, STG holders criticized the swap ratio (1 STG → 0.08634 ZRO) as undervalued.

2. @HouseofYogiX: Merger “mispriced”

“Stargate acquisition is mispriced […] ppl have not done the proforma.”
– @HouseofYogiX (3.8K followers · 15K impressions · 2025-09-07 16:20 UTC)
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What this means: Neutral-to-bullish sentiment, suggesting the market hasn’t priced in potential revenue synergies from merging Stargate’s $70B+ cross-chain volume with ZRO’s governance.

3. CCN: DAXA warning pressures price

ZRO dropped 7% to $1.97 after South Korea’s DAXA flagged “higher risks” (Aug 25). Technicals show a descending channel with key support at $1.71.
What this means: Bearish short-term due to regulatory scrutiny and thin liquidity. A break below $1.85 could trigger panic selling (source).

Conclusion

The consensus on ZRO is mixed, balancing Stargate’s revenue-driven upside against regulatory risks and token unlock pressures (23% of supply unlocked in June). Watch the ZRO/STG redemption rate post-merger and DAXA’s next regulatory move. For bulls, $2.40 is the litmus test; bears eye $1.71.

Deep Dive

1. Gate Launches Layer 2 with LayerZero (25 September 2025)

Overview: Gate unveiled its Layer 2 network, Gate Layer, built on OP Stack and secured by GateChain (L1). The chain integrates LayerZero for cross-chain interoperability with Ethereum, BSC, and Polygon, offering ultra-low fees (1M transfers for <$30) and EVM compatibility. ZRO serves as the exclusive gas token, with a dual deflationary model via quarterly burns and EIP-1559 base fee burns.
What this means: This is bullish for ZRO as it expands utility into a high-throughput ecosystem, potentially driving demand for transactions and staking. The integration also strengthens LayerZero’s role in enterprise-grade blockchain solutions.
(Gate Team)

2. PayPal Expands PYUSD via LayerZero (18 September 2025)

Overview: PayPal launched PYUSD0, a permissionless stablecoin variant, across eight new blockchains (Tron, Avalanche, Aptos) using LayerZero and Stargate Hydra. This enables seamless cross-chain transfers without centralized intermediaries, targeting DeFi payments and trading.
What this means: This is bullish for ZRO as it cements LayerZero’s position as a critical infrastructure for institutional stablecoin adoption. Increased PYUSD0 volume could drive protocol fee revenue if activated.
(Bitget)

3. ZRO Token Unlock Triggers Volatility (20 September 2025)

Overview: 25.71M ZRO tokens (~8.5% of circulating supply) were unlocked on 20 September, part of a monthly vesting schedule through May 2027. The event coincided with a 3.5% ZRO price drop over the past week, reflecting concerns about sell pressure.
What this means: This is bearish short-term due to increased liquidity risks, but long-term impact depends on demand from new integrations (e.g., Gate Layer). The unlock follows a 24% price surge in August post-Stargate acquisition.
(Indodax)

Conclusion

LayerZero’s ecosystem is growing through strategic partnerships (Gate, PayPal) and absorbing short-term supply shocks from token unlocks. The protocol’s cross-chain dominance hinges on balancing adoption-driven demand with inflationary pressures. Will ZRO’s deflationary mechanisms offset unlock-related volatility as institutional integrations scale?

Deep Dive

1. Stargate Acquisition Finalized (24 August 2025)

Overview: LayerZero completed its $110M acquisition of cross-chain bridge Stargate, consolidating operations under its foundation.

The deal allows STG holders to swap tokens for ZRO at a 1:0.08634 ratio, phasing out STG. LayerZero now controls Stargate's $70B+ cross-chain transaction infrastructure. Post-acquisition, 50% of Stargate's revenue will fund ZRO buybacks for six months (Source).

What this means: This is bullish for ZRO because it eliminates competing governance tokens and centralizes revenue streams toward ZRO’s deflationary mechanics.

2. Fee Conversion Vote Implemented (27 June 2025)

Overview: ZRO holders approved activating protocol fees via on-chain referendum, with collected fees used for token burns.

The vote required a 50.4% quorum threshold. Fees apply to every LayerZero cross-chain message, creating a sustained buyback mechanism. This followed a major token unlock event where 23.13% of ZRO’s circulating supply entered markets (Source).

What this means: This is neutral for ZRO short-term due to unlock sell pressure but bullish long-term as fee burns could offset inflation.

3. DVN Security Upgrade (23 May 2025)

Overview: Deutsche Telekom MMS became a decentralized verification node (DVN) operator, enhancing cross-chain security.

This enterprise-grade partnership improves message validation across LayerZero’s 70+ connected chains. It follows similar integrations with Chainlink and Google Cloud oracles (Source).

What this means: This is bullish for ZRO because institutional validators reduce smart contract risks, making the protocol more attractive for large-scale adoption.

Conclusion

LayerZero’s recent moves prioritize ecosystem consolidation and sustainable tokenomics over direct code changes. The Stargate merger and fee mechanism create deflationary pressure, while enterprise validators boost security credibility. With ZRO down 53% year-over-year despite these upgrades, does the market underestimate its interoperability moat?

Deep Dive

1. Stargate Integration (Q4 2025)

Overview:
LayerZero’s proposed $110M acquisition of Stargate (The Block) aims to retire the STG token (1:0.08634 ZRO swap) and dissolve Stargate’s DAO. Post-acquisition, Stargate’s revenue will fund ZRO buybacks, aligning incentives across LayerZero’s ecosystem.

What this means:
This is bullish for ZRO as it consolidates LayerZero’s cross-chain dominance and introduces a revenue-driven token sink. Risks include community dissent over swap ratios and integration delays.

2. Fee Conversion Referendum (December 2025)

Overview:
ZRO holders will vote on activating protocol fees for cross-chain messages, with revenue used to buy and burn tokens. The quorum is set at 50.4%, reduced from prior referendums due to strong historical support (Binance Square).

What this means:
This is neutral-to-bullish – approval could reduce ZRO supply and boost scarcity, but low voter turnout or fee resistance might stall momentum.

3. BTCfi Expansion (2026)

Overview:
LayerZero plans deeper BTC interoperability, building on its Persistence One partnership to enable cross-chain swaps via intents (Persistence Blog). This aligns with Bitcoin’s growing L2 ecosystem.

What this means:
This is bullish long-term, opening ZRO to Bitcoin’s liquidity but faces technical hurdles in scaling zero-slippage swaps across heterogeneous chains.

Conclusion

LayerZero’s roadmap balances immediate tokenomics (Stargate buybacks, fee activation) with strategic bets on Bitcoin interoperability. Will ZRO’s utility as a governance and fee asset outpace cross-chain competition like Wormhole?