Abandoning its own blockchain for Solana's embrace? Where is ZetaChain, which surged 53%, heading?

▲ Abandoning its own blockchain for Solana's embrace? Where is ZetaChain, which surged 53%, heading?/Source: X

ZetaChain (ZETA) is experiencing a record surge, driven by a groundbreaking governance decision to discontinue its own blockchain and fully migrate to the Solana ecosystem.

On September 22 (local time), according to CoinMarketCap, a cryptocurrency market aggregation site, ZETA surged by 53.77% in 24 hours to reach $0.0603, achieving a unique growth rate that surpassed the entire market even in a bullish trend.

The decisive trigger for this surge was the result of a community vote to terminate the existing Layer 1 (L1) network. ZetaChain holders voted to discontinue the operation of their Cosmos-based Layer 1 network and to convert ZETA tokens to Solana SPL tokens at a 1:1 ratio, approving 'Proposal 68' with an overwhelming 99.4% majority. The expectation that this would reduce the infrastructure burden of operating an independent chain and allow them to absorb Solana's massive liquidity directly led to a large-scale speculative buying spree.

The rally across the Layer 1 sector and the artificial intelligence (AI) pivot strategy also contributed to the upward momentum. While major Layer 1 coins like Sei (SEI) and Sui (SUI) showed a strong concurrent rally, a key justification for the move to Solana was the focus on developing 'Anuma,' a privacy-centric AI application, which led to a significant influx of liquidity reacting to the AI narrative.

In terms of trading volume, the 24-hour trading volume surged by an astonishing 3,445%, confirming strong buying conviction. From a short-term technical perspective, if the $0.055 support level is defended, a retest of the recent high of $0.0605 is likely. Conversely, if profit-taking from the sharp rise leads to a sell-off and the price falls below the $0.048 level, a short-term correction phase could deepen.

Experts stated that before the final migration vote, it must be confirmed whether major exchanges will support the token swap, and during the second governance vote process, where the snapshot schedule and network termination schedule will be concretized, it is crucial to monitor for any delays or variables.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*