LayerZero (ZRO) traded at $1.63 at the time of writing, up over 8% in the past 24 hours and nearly 11% over the past 7 days. The token moved between $1.51 and $1.73 in days’ range so far, showing renewed short-term momentum.
Yet it still sits 78% below its all-time high of $7.51 reached on December 6, 2024. So what has changed?
DAO Completes STG Burn
On February 27, 2026, LayerZero DAO confirmed that it destroyed all remaining STG tokens held in its treasury. On-chain records show that approximately 303 million STG tokens moved to a black hole address, permanently removing them from circulation.
Bryan Pellegrino, co-founder and CEO of LayerZero Labs, confirmed the burn publicly. He stated that the DAO fulfilled its commitment and emphasized that the redemption contract remains open for users who still hold STG.
The move finalizes the transition from STG to ZRO. The DAO officially renamed STG as ZRO, aligning branding and token identity across the ecosystem.
Token burns often draw attention because they reduce supply. When supply drops while demand holds steady or grows, price reactions can follow. In this case, traders responded quickly.
What The Rebrand Means For Holders
The rebrand simplifies the project’s token structure. Instead of operating under two separate tickers, the ecosystem now centers fully around ZRO. The exchange contract still allows holders to swap STG for ZRO, ensuring a smooth transition.
Market participants often watch supply events closely. A reduction of 303 million tokens represents a significant structural change. However, price movements depend on broader demand and market conditions as well.
LayerZero currently ranks around number 75 by market cap, with roughly 83,000 holders tracked. The project continues to position itself as a cross-chain interoperability protocol, connecting different blockchain networks.
Will the simplified token model attract new participants? Or will macro conditions dictate the next move?
Technical Structure Shows Consolidation
From the technicals, ZRO’s daily chart shows a bullish pennant formation following a prior breakout. Price now consolidates within a tightening range between $1.49 and and the descending trendline of the wedge after establishing a local bottom inside that structure.
Source: TradingView via CMC
A bullish pennant typically forms when price rallies, then compresses into a narrowing pattern before a potential continuation move. Traders often monitor whether the price holds above recent support levels and breaks above resistance with volume.
ZRO recently got rejected at the from its consolidation support, a signal of stabilization rather than sharp rejection. Whether that structure evolves into sustained upside depends on follow-through. An overall breakout of the wedge would push ZRO towards $2.
Forecast Points To Long-Term Upside
According to data from CoinCodex, analysts project LayerZero could reach $3.96 by the end of 2026. That target implies potential upside of roughly 140% from current levels.
Such forecasts rely on algorithmic modeling and historical trend analysis. They do not guarantee outcomes, yet they offer a reference point for long-term expectations.
For now, ZRO trades far below its prior peak, yet recent supply changes and technical stabilization have shown renewed bullish interest. The burn marks the end of the STG chapter. The question now becomes simple: does this structural reset fuel a broader recovery, or will consolidation continue before the next decisive move?
