LayerZero (ZRO) Price Soars 52% in a Week, What's Up?

Bittime - LayerZero (ZRO) token price jumps 52% in a week! But is this price increase a sign of a bright future for ZRO? Let's discuss it in this article!

ZRO To The Moon? Not necessarily!

The AMBCrypto report analyzing Santiment data actually shows a decline in ZRO Network Growth. This means, when prices are rising, new users' interest in ZRO actually decreases. 

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Apart from that, ZRO's Velocity also decreased. Velocity shows how often a token is traded. The decline in Velocity indicates a slowdown in ZRO buying and selling activity.

LayerZero Security Challenges Emerge

In the midst of rising prices, security issues are haunting LayerZero. The SherlockDefi program run by an analyst named 0x52 discovered a potential security issue with the LayerZero protocol. 

Precisely in the LayerZero contract which regulates the flow of messages between blockchains. According to 0x52, the contract has no restrictions on message size and destination address.

This security gap can be exploited by irresponsible parties to send messages with very large sizes or to the wrong destination address. 

As a result, there could be communication disruptions between blockchain networks connected to LayerZero. This disruption has the potential to cause significant financial loss.

0x52 warns that this security flaw could have far-reaching impacts, especially on protocols that connect Ethereum Virtual Machine (EVM)-based networks with non-EVM networks such as Solana. The two types of networks use different address formats.

LayerZero Denies Vulnerability

Responding to these accusations, LayerZero Labs, through CEO Bryan Pellegrino, immediately provided an explanation. According to Pellegrino, the app's ability to set message size limits was an intentional design.

Pellegrino argued that permanently limiting message sizes could potentially lead to censorship. This certainly contradicts LayerZero's main goal, namely building a system that is resistant to censorship.

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Pellegrino further explained that the code analyzed by 0x52 was actually application configuration code from 2022, not core LayerZero protocol code. This means that the security flaws identified are not in the core of LayerZero itself.

Pellegrino added that the message size limit is actually part of the application's security settings. Each application has the freedom to set these limits as needed.

After receiving an explanation from Pellegrino, 0x52 deleted all previous tweets and agreed with the explanation.

Conclusion

Although Weighted Sentiment towards ZRO remains negative at the time of writing, views on the LayerZero protocol as a whole are improving compared to a few weeks ago. 

If market sentiment continues to improve, this could be reflected in ZRO price movements. For the record, the price of ZRO when this article was written was around IDR 63 thousand (US$ 3.89).

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You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn How to Buy Crypto on Bittime.

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