LayerZero’s ZRO token is one of the best performers among the top 100 cryptocurrencies by market cap in the last 24 hours, adding 10% to its value during that period.
The positive performance comes as leading altcoins retrace following the recent rally.
It also comes after LayerZero introduced ATLAS, an exchange infrastructure platform designed for crypto companies, brokers and traditional financial institutions.
ATLAS, short for Aggregated Trading, Liquidity and Settlement, will provide the backend technology needed to operate markets while allowing participating companies to retain their customer relationships and user interfaces.
The technical indicators suggest that ZRO could extend its rally as the bulls remain in control.
ATLAS operates as a ‘headless exchange’
LayerZero describes ATLAS as a “headless exchange” because it will not offer its own retail application or trading platform.
Instead, exchanges, brokers and financial institutions can integrate the infrastructure behind their existing services. This means participating platforms can use ATLAS without directing customers to a competing exchange.
The system brings matching, clearing, settlement and risk management into a single infrastructure layer.
LayerZero said this structure could eliminate the need for trading platforms to build and maintain each component independently.
ATLAS is built on Zero, the financial-markets blockchain LayerZero announced in February with support from Citadel Securities, the Depository Trust & Clearing Corporation, ARK Invest and Intercontinental Exchange.
Zero uses zero-knowledge proofs to verify trades onchain and is designed specifically to support financial-market infrastructure.
ATLAS will be the first product developed on the blockchain, according to Jack Melnick, who recently joined LayerZero from Berachain to lead strategy for Zero and ATLAS.
ATLAS will support two broad categories of markets. Open markets will serve publicly accessible products such as cryptocurrency applications, prediction markets, and other trading platforms.
Institutional markets will be able to establish rules governing who can participate and the conditions under which trading can occur.
The infrastructure will connect three primary types of participants: trading venues, market creators and market makers.
Trading venues will operate the customer-facing applications and maintain relationships with their users. Market creators will define the assets, products and trading rules available through the system.
Supported markets could include spot cryptocurrencies, perpetual contracts, stocks, commodities, bonds, memecoins and prediction-market contracts.
Market makers will provide the liquidity required to facilitate trading across these products.
According to LayerZero, ZRO will secure Zero through delegated proof-of-stake, serve as the network’s gas token and allow holders to participate in governance.
Trading venues will also be able to stake ZRO to qualify for larger fee rebates on ATLAS. The highest rebate tier will require a stake equivalent to as much as 1% of the token’s total supply.
ZRO could extend its rally towards $1.46
The ZRO/USD 4-hour chart is bullish and efficient thanks to the latest rally. The technical indicators suggest that the bulls have regained control of the market.
The RSI of 59 is above the neutral 50, indicating a growing bullish bias. The MACD lines also crossed into positive territory a week ago, adding further confluence to the bullish narrative.
If the rally persists, ZRO could extend its gains towards the 4-hour swing high of $1.46 for the first time since May 25.
Above this level, the bulls would encounter further resistance at the $1.57 Transactional Liquidity (TLQ) point.
However, if ZRO succumbs to a retracement like other major altcoins, it would likely retest the Tuesday low of $1.05 in the near term.
Failure to defend this support level could see ZRO extend its retracement towards the Saturday swing low of $0.88.
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