Layerzero ZRO Token Rises 52% in Just 7 Days. What’s Behind This Rise?
Journalist
- The price of the ZRO token has risen sharply in the past few days.
- Security concerns related to the Layer Zero protocol have been a cause for concern.
The Layer Zero token [ZRO] has seen a significant price increase in the past week as the price of the token has increased by 52%.
ZRO to the moon?
Regardless of ZRO’s price increase, recent data analysis reveals a decline in network growth and velocity. This suggests a decrease in new users and trading frequency for ZRO.
Source: Santiment
Some challenges for LayerZero
Concerns about security vulnerabilities in LayerZero have emerged, with potential implications for the ZRO token.
A recent review of the UXDProtocol as part of the SherlockDefi program uncovered potential issues with LayerZero. Specifically, the user claimed that the Layer Zero endpoint contract had no limits on message size and destination addresses, posing a potential exploit.
This vulnerability could potentially disrupt communication between different blockchain networks, affecting protocols that rely on LayerZero’s functionality.
According to the findings, this vulnerability could affect many protocols that use LayerZero, especially those that involve both Ethereum [ETH] Virtual Machine (EVM) chains and non-EVM chains such as Solana [SOL] that use different address sizes.
A rebuttal
LayerZero Labs responded to these allegations, arguing that allowing applications to configure payload limits was a deliberate design decision made with a specific purpose in mind.
Source: X
Further clarification emphasized that the code referenced is related to application configuration, not the core protocol itself, indicating that the vulnerability does not lie in the fundamental functioning of LayerZero.
The payload size limit acts as part of an application’s security settings, giving individual applications the ability to adjust it according to their specific needs.
After learning of this response, the initial concerns were retracted, aligning with LayerZero Labs’ explanation.
Source: X
Although the sentiment around ZRO was negative at press time, there has been a significant improvement in the overall outlook around the protocol compared to the past few weeks.
If sentiment continues to improve, this could be reflected in ZRO’s price action. At press time, ZRO was trading at $3.89.
Source: Santiment
