LAYER Price Plummets: How to Trade LAYER?

2025-05-06, 11:19

Since the end of February this year, the LAYER token has bottomed out around $0.6 and started a continuous upward trend. Even during a big dump in the middle, the LAYER price remained strong. On May 6, 2025, according to the market data of the Gate trading platform, LAYER is currently priced at $1.91, with a 24-hour fall of 38.81%. After touching $3.4 yesterday afternoon, LAYER started to decline, and began a big dump around 4 pm today, with a drop of over 30% in one hour. The current circulating market value of LAYER is $407 million, ranking 123rd in the entire market.

In addition, according to publicly available market information, LAYER will unlock 27.02 million tokens at 22:00 on May 11, worth about $60 million, accounting for 12.87% of the circulation. How will LAYER be traded in the future?

LAYER market analysis

Current market overview

  • Spot Price: 1.9134 USDT
  • Highest price in 24h: 3.1948 USDT
  • 24-hour Lowest Price: 1.9385 USDT
  • 24-hour price change: -38.81%
  • 24-hour trading volume: 18934084.3 LAYER
  • Market sentiment: The Fear & Greed Index is 59, indicating that the market sentiment tends towards greed.

Trading Strategy Recommendation

Strategy one: Short-term rebound trading

  • Direction: Bullish
  • Entry Price: 1.95 USDT (current price)
  • Stop-loss price: 1.90 USDT (support level below the current price)
  • Target price: 2.20 USDT (close to the middle of the 24-hour high)

Reason: The current price is close to the 24-hour low point, and a short-term rebound may occur. Market sentiment is leaning towards greed, which may attract more buying interest.

Strategy features: Quick profit in the short term, suitable for highly volatile market conditions. The stop loss is set below the support level to reduce risk.

Strategy Two: Breakthrough Trading

  • Direction: Bullish
  • Entry price: 2.00 USDT (price surpassing the previous high)
  • Stop-loss price: 1.90 USDT (protective stop-loss)
  • Target price: 2.50 USDT (set at potential resistance level)

Reason: If the price breaks through 2.00 USDT, it may trigger more buying orders, forming an upward trend. Combined with market sentiment, greed may drive the price further up.

Strategy characteristics: Suitable for trend traders, trading based on breakout signals. Set stop loss below the support level to ensure manageable risks.

What is the Solayer project?

Solayer is an innovative re-staking protocol on the Solana blockchain, allowing users to obtain sSOL tokens by staking SOL or liquidity staking tokens (such as mSOL, JitoSOL), and further supporting DApps and validation services (AVS) in the Solana eco. Its core features include:

  1. Further staking pool management: convert staked assets to sSOL to improve capital efficiency;
  2. Delegated management: allocate sSOL to Sonic Layer 2 and other AVS to enhance network security;
  3. Reward mechanism: Calculate staking rewards through the offline module, support airdrops and loyalty programs.

Solayer adopts a single-pool liquidity design (sSOL/SOL) to reduce trading friction, while combining distributed storage, data encryption, and open APIs to build a decentralized cloud storage eco. Its token LAYER is used for payment, governance, and incentives, with a total supply of 1 billion. The project draws on the EigenLayer model, aiming to optimize capital utilization and security in the Solana eco.

LAYER future outlook

Despite the recent sharp fluctuations in the LAYER price, its strong performance since the low point of $0.6 at the end of February, as well as the innovative positioning of the Solayer project in the Solana eco, still provide support for long-term value. In the short term, attention needs to be paid to the selling pressure brought by the token unlock on May 11th, but if the project can continue to expand AVS cooperation and staking scale, LAYER may regain its upward momentum along with the recovery of the Solana eco.


Author: Icing, Gate.io Researcher
*This article represents only the views of the researcher and does not constitute any investment suggestions. Investment involves risks and users need to make careful decisions.
*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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