🚨🚨 Why did SOLAYER drop? What is behind the recent decline and what to expect moving forward?

People are discussing why SOLAYER dropped.

One factor is the token unlocking event on May 15, 2025. 46,393,750 LAYER tokens will be released, which is 4.64% of the maximum supply.

Moreover, on July 15, 27,227,083 LAYER tokens will be unlocked, making up 2.72% of the total. These tokens will be released to project team members and early investors.

After the main net launch in March 2024, 90% of the LAYER tokens used for fundraising were locked and will be gradually released over 12 months.

The release of these tokens, especially to early investors and project team members, may lead to increased selling pressure, impacting the token price negatively.

However, even before the token unlockings, the market reacted strongly, with many selling due to fear of a larger drop, further accelerating the correction.

Many believe that the market anticipated the token unlockings, and this contributed to the rapid price decline.

“They already announced the token unlocks a long time ago. People knew about it. It’s ‘sell the rumor, buy the news’ in classic fashion. They’re not unlocking them early, they’re unlocking them on time. It’s going to be interesting to see how the token price reacts after the first batch of tokens are unlocked in May 2025.”

Another user added: “Smaller investors are getting liquidated and driven out of their positions. It’s quite ironic considering they are the ones who keep the token afloat with their small trades.”

One user suggested that the project team members might be selling their tokens to take some profits after a significant price increase.

“Maybe they took some gains. They’ve seen triple-digit gains on their initial investment, so maybe they’re booking some profits.”

Another user pointed out that the project maintains good fundamentals, such as scalability, an active community, and real innovation.

“It’s still a promising project with a scalable blockchain, a very active community and a project that is actually building something new and innovative.”

This correction is an opportunity for those who missed out on buying LAYER at a lower price.

Buying low and holding for the long term is a classic and effective strategy in the crypto universe.