This week has not been kind to Solayer’s LAYER token. Within less than a week it had plummeted by more than 40%, erasing almost $300 million in value. This crash has raised concerns among investors. This punishing configuration provides an opportunity for those motivated enough to “buy the dip.” Beware of the risks associated with continued price decreases.

Solayer, a blockchain company providing restaking solutions within the Solana ecosystem, saw its LAYER token's market capitalization fall to $354 million. That’s a significant drop from its year-to-date peak of $627 million.

In addition, the price of the LAYER token crashed at the time of the sell-off. It went from a record high of $3.4 all the way down to just $1.5892. The decline brings the token ever so much closer to the $3 market, going from just under $3.4 to just under $3.

Solayer has already raised more than $116 million in assets. Investors are understandably anxious with the upcoming unlocking of 43.40 million LAYER tokens on May 16th. These tokens are valued at $78 million, further stoking investors’ fears.

The unlocked tokens are currently scheduled for distributions to airdrop recipients, the foundation, and the community. Later this year, we will release even more tokens worth more than $90 million. Over the next year, we expect to release tokens equivalent to a shocking $386 million.

The recent drop in the price of LAYER token might be a great buying opportunity. Today, holders can earn as much as 4% by depositing into the sUSD T-Bill.

Analysts have been watching closely just to see how the vastly popular new token performs. One even says the price will go under $1 in the next few weeks. This unfortunate state of affairs echoes Mantra’s story. Their token’s value fell by over 90% within 24 hours due to forced liquidations.