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If you’ve moved a token between blockchains recently, there’s a very good chance LayerZero handled the delivery. The protocol’s Omnichain Fungible Token (OFT) standard now accounts for 87% of all cross-chain transfer volume, a figure the company highlighted on August 4.
How OFT became the default
The OFT standard works on a deceptively simple principle. When a token needs to exist on multiple blockchains, it uses a burn-and-mint mechanism. Tokens are burned on the source chain, then minted on the destination chain, keeping the global supply constant across more than 100 supported networks.
For token issuers starting from scratch, this is particularly attractive. Rather than deploying separate contracts on every chain and managing liquidity independently, OFT offers a single standard that handles expansion across dozens of networks simultaneously.
As of June 2025, LayerZero was managing approximately $44 billion in cross-chain assets.
The stablecoin angle
As of May 2025, 61.2% of all issued stablecoins, roughly $150 billion worth, were supported by LayerZero’s infrastructure.
Pruning the garden and upcoming token dynamics
On July 24, the protocol announced it would wind down support for several low-activity chains, including Botanix and Canto, citing minimal user engagement.
Meanwhile, market participants are watching an upcoming event closely. A monthly unlock of 32.6 million ZRO tokens, valued at approximately $25.45 million, is scheduled for August 20.
What investors should watch
The competitive landscape is the biggest variable for LayerZero going forward. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) has been gaining traction, particularly in the wake of security incidents that reportedly prompted some protocols to migrate away from LayerZero.
For investors evaluating LayerZero’s position, three factors deserve close attention. First, the protocol’s ability to maintain its security track record as volume continues to scale. Second, whether the chain pruning strategy translates into better resource allocation and improved service quality on the networks that matter most. And third, how the monthly ZRO unlocks interact with broader market conditions, particularly whether organic demand from protocol fees can absorb the incremental supply.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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