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LayerZero $ZRO has finally issued an apology after days of backlash over its slow response and lack of transparency surrounding the infrastructure incident tied to KelpDAO. But in crypto, trust can disappear faster than a cascading red candle
By the time the apology arrived, major projects had already started “moving out” to Chainlink’s CCIP:
KelpDAO: around $1.5B TVL
Solv Protocol: around $600M TVL
re: — around $200M TVL
Nearly $2 billion in TVL is now drifting away from the LayerZero ecosystem, a number big enough to shake market confidence
What makes this even more critical is that major players like Ethena’s USDe, EtherFi’s weETH, and Tether’s USDT0 are still building on LayerZero. The future of LayerZero may now depend entirely on whether it can keep these giants from leaving
In crypto, technology can be rebuilt, but trust is far harder to recover. The coming weeks could determine whether LayerZero remains a dominant omnichain force, or becomes another example of how quickly sentiment can turn in this market
#TetherBurns2BUSDT #KelpDAOAttackerLiqd $ZRO $ETH
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