Six days ago, Renzo suffered a scare after it depeged from its 1:1 peg with WETH, going to lows of 0.27, with its restaked Ether token (EZETH) shedding its value to $688. That triggered a momentary panic from investors. However, many were satisfied with the explanation that attributed the fall to a widespread selloff following an airdrop. Following the depeging incident, the Renzo development team made amends, raising the season one airdrop allocation from 5% to 7%. In addition, it announced that the total token allocation to airdrops would go up from 10% to 12% of the 10 billion token supply.
With the airdrop claim scheduled for today, April 30, 2024, we are likely to see a spike in the token’s volatility. Users with a minimum of 360 Renzo will be eligible for the $REZ airdrop. In addition, the airdrop comes an hour before Renzo goes live on Binance, which will likely add propulsion to the $REZ token price movement. $REZ will also be listed on Kucoin exchange at 12:00 UTC on April 30, 2024, while withdrawals will start at 10.00 UTC on May 1.
Liquid restaking is a form of staking whereby token holders stake their ETH to secure the Ethereum network and receive synthetic tokens representing their staked ETH. They can then use the synthetic tokens to support the economies of external applications and earn yields. Liquid restaking takes place on the EigenLayer, a protocol built on Ethereum. Renzo is the second-largest liquid restaking protocol, with its $3.3 billion in Total Value Locked coming second to Ether.fi’s $3.9 billion. Renzo has experienced a fast growth rate over the past month, with its TVL rising by over 120 per cent during that period.
$REZ pivots at 0.488 and the upside will prevail if action remains above that level. The upward momentum will likely encounter resistance at 0.594, but a continuation of control by the buyers could break the resistance and potentially push the REZ token price to test 0.0698. On the other hand, a move below 0.488 will favour the sellers to be in control, with the first support coming at 0.348. A continuation of bearish control at that mark could break the support and reverse the upside narrative. Furthermore, it will likely build the momentum to test 0.0233.