Solayer’s token has seen a significant crash, wiping out over $350 million in value as investors brace for a major token unlock.
Solayer’s token has dropped by nearly 35% in the past 24 hours, trading at $1.75 as of press time. The token is now down 47.8% from its all-time high of $3.39 set on May 5. Market activity surged alongside the price drop, with over $1.26 billion in LAYER traded in the last 24 hours, a 179% increase, as per CoinGecko data.
The sharp decline appears to be driven by investor fear over an upcoming May 11 token unlock. According to Tokenomist data, this unlock will release more than 27 million tokens, nearly 13% of the total supply, valued at $46.7 million. Many expect the unlock to add more selling pressure. The event will also start a long-term vesting plan, with fresh tokens issued every three months to the foundation until 2030.
Data also points to a whale exiting their position during Asia trading hours, potentially accelerating the decline. In a May 6 post on X, one user described the event as a “scam exit,” noting the wallet had quietly opened a large short via perpetual futures, pushing funding rates negative, then slowly sold off their long position.
This strategy reportedly helped the trader profit despite the crash. Some users on X claim this was part of a planned exit involving over-the-counter token sales and short positions.Â
Solayer has lost around $350 million in market value following this decline, reversing much of its 460% gains from February through early May. Many users say they are surprised by how fast the price dropped. The long/short ratio flipped to 1.45, showing that some traders expect a recovery, though volatility remains high and others fear more losses.
Still, the Solayer team insists the project remains solid. Solayer is a hardware-accelerated blockchain, aiming for speeds of over one million transactions per second. The Solayer Emerald Card also lets users spend USD Coin (USDC) with Visa, and works with Apple Pay and Google Pay.
