TL;DR
- Following the launch of Renzo Protocol’s REZ token and its listing on Binance, the token’s price plummeted, losing 35% of its value.
- The initial market capitalization was $289 million, with a trading volume of $75 million in the first hour.
- The sudden drop in the price of ezETH triggered a wave of sales. After massive liquidations, REZ plummeted on its first day of trading on Binance.
The recent launch of Renzo Protocol’s REZ token, followed by its listing on Binance, caused a significant stir in the market. The protocol couldn’t avoid the initial turbulence, and the token’s value experienced a considerable drop shortly after entering the market.
Renzo, known for its focus on liquid restaking, opened requests for the airdrop of its native token, REZ, which debuted with a market capitalization of $289 million. During the first hour of distribution, the token recorded a trading volume of $75 million.
The initial distribution of the token consisted of 1.15 billion units, while the remainder, approximately 8.85 billion, will remain locked until certain criteria are met. Among the different distribution categories, 31% is reserved for investors, 32% for the community, and 20% for the main contributors, who must comply with locking and vesting periods.
The protocol acts as a bridge to EigenLayer, offering Active Validation Services (AVS) to users. By staking Ether (ETH) on the platform, users earn ezETH, Renzo’s liquid restaking token, which can be used to achieve higher yields in various decentralized finance (DeFi) protocols.
Renzo Plunges. Can It Recover?
However, the launch of REZ was overshadowed by the sudden and sharp drop in the price of ezETH, the consequences of which impacted the protocol directly. A wave of ezETH sales occurred due to an alleged error in future airdrop allocations, breaking the correlation with ETH and leading to massive liquidations. The situation highlighted the inherent risks of liquid restaking and served as evidence of the need for more robust and resilient liquidity structures in the crypto market.
On the other hand, REZ faced some challenges on its first day of trading on Binance. Despite its anticipated arrival on the platform, the token’s value dropped by almost half shortly after its listing on the exchange. This decline coincided with the opening of the airdrop, which distributed 7% of the maximum supply to over 100,000 eligible users.
According to the latest data provided by Coinmarketcap, Renzo (REZ) is being traded at $0.1657. Its value experienced a sharp decline. Just a few hours ago, it was trading above $0.25. The loss amounts to 35% for now. Its current market capitalization is just below $194 million.
Despite these initial challenges, Renzo Protocol remains one of the leading liquid restaking protocols in the market, with over $3.3 billion in total value locked (TVL), according to DefiLlama data.
