LayerZero ZRO Buybacks Face $25M Token Unlock
LayerZero is gaining support from ARK Invest CEO Cathie Wood, who says the cross-chain messaging protocol may be significantly undervalued. ARK researcher Lorenzo Valente estimates LayerZero could eventually generate nine-figure annual recurring revenue. LayerZero handled about 44% of cross-chain volume in the first half of 2026, narrowly ahead of Circle’s CCTP at 41%.
The LayerZero token, ZRO, has risen about 36% in the past month to roughly $1.06, but remains well below its 2024 peak. The protocol has introduced fees of up to two basis points on Stargate OFT transfers, capped at $250 per transaction, and raised the minimum Executor fee to $0.25. Excess Stargate revenue is being used to buy ZRO, creating a stronger link between LayerZero usage, revenue and token demand. From September to November 2025, Stargate generated about $2.4 million in revenue, with $1.2 million used for ZRO purchases.
The immediate risk is a scheduled unlock of approximately 23.6 million ZRO for core contributors and strategic partners around 19–20 September. Worth about $25 million at current prices, the release equals roughly 6.7% of ZRO’s circulating supply, which stands near 353 million tokens out of a maximum 1 billion.
LayerZero also faces competition from Chainlink’s CCIP. Mantle moved more than $2.5 billion of cross-chain infrastructure to Chainlink, while Lombard shifted over $1 billion in Bitcoin-backed assets. The ZRO outlook therefore depends on whether buybacks and rising network usage can offset token unlock selling and competitive pressure.
Neutral
The market impact is neutral because LayerZero has both a bullish catalyst and a material near-term supply risk. New Stargate fees and revenue-funded ZRO buybacks improve tokenomics by linking network activity to recurring demand. ARK’s revenue thesis and LayerZero’s leading share of cross-chain volume could support a stronger long-term valuation if usage continues to grow.
However, the scheduled release of about 23.6 million ZRO represents roughly 6.7% of circulating supply. Similar large token unlocks in crypto markets often create short-term volatility, as recipients may sell, hedge or reduce exposure ahead of the event. Buybacks may absorb part of that supply, but the article does not establish that their scale will match the unlock.
Competition is another constraint. Mantle and Lombard have moved significant infrastructure and assets to Chainlink’s CCIP, raising questions about LayerZero’s ability to retain institutional cross-chain volume. In the short term, traders may focus on the unlock date, exchange inflows, funding rates and spot volume. A sharp rise in deposits or weak price action could reinforce bearish pressure. Over the longer term, sustained usage, growing Stargate revenue and consistent ZRO buybacks could support a bullish re-rating. Until those forces become clearer, the risk-reward profile remains balanced rather than decisively bullish or bearish.