LayerZero’s ZRO token dropped more than 4% in the last 24 hours to $1.40. The decline followed KelpDAO’s announcement that it would move from LayerZero to Chainlink CCIP, after an April 18 exploit caused over $300 million in DeFi losses.
With the LayerZero price down 24.46% over the past month, that decline now carries a documented cause. KelpDAO’s announcement draws on assessments from SEAL 911, Chainalysis, and independent security researchers, each of which attributes the breach to LayerZero Labs’ DVN infrastructure rather than an application-layer misconfiguration.
KelpDAO Blames LayerZero Infrastructure, Moves to Chainlink CCIP
KelpDAO’s migration decision comes backed by a specific data point: roughly 90% of LayerZero messages over the prior 90 days ran through the LayerZero Labs DVN, the same infrastructure that was compromised on April 18.
The team published a lengthy article late Tuesday titled “Setting the Record Straight Around the LayerZero Bridge Hack.” According to them, attackers accessed the DVN’s RPC endpoint lists, executed a DDoS against non-compromised nodes, and tricked DVN signers into validating two forged transactions totaling over $100 million. Kelp stopped the exploit by detecting it and pausing its own contracts first.
LayerZero’s postmortem confirms the breach affected its own infrastructure, with attackers accessing RPC lists and compromising two separate cluster nodes. Still, the 1-1 DVN setup involved in the breach was used by 47% of LayerZero OApp contracts and remains the default in LayerZero’s OFT quickstart guide.
CEO Bryan Pellegrino pushed back, producing on-chain transactions showing KelpDAO manually switched from a multi-DVN default to a 1-1 config in April 2024. Eight integration reviews over 2.5 years, Telegram logs of LayerZero team members explicitly approving that same configuration — Kelp’s counter is on-chain.
Going forward, rsETH cross-chain transfers will move to Chainlink CCIP, a network that has processed over $30 trillion in value across more than seven years without a comparable infrastructure failure.
ZRO Price at Decision Point: $1.55 Breakout or $1.25 Breakdown
LayerZero coin price is now testing $1.40 in a falling wedge pattern, which signals the final stage on the 4-hour chart. This pattern has been forming since the price dropped from above $2.00 on April 19, and the squeeze is almost over.
If the price closes above $1.55 on the 4-hour chart, that confirms a breakout. The next targets would be $1.65 to $1.70, with $1.80 as a further target, but only if trading volume doubles or triples from the current average.
However, before any breakout, the ZRO price will likely dip to $1.27-$1.30. This is usually where weaker holders sell, and buyers come in. If the price closes below $1.25 for the day, the setup fails, and the next support is at $1.10 to $1.15.
The near-term LayerZero price prediction depends on how the next few candles behave at $1.40. If that level holds, the outlook changes; if not, the trend will follow accordingly.
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