Layerzero ZRO Token Rises 52% in Just 7 Days. What’s Behind This Rise?

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

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