LayerZero to axe 14 low-activity chains after KelpDAO exploit – Details

What happened

LayerZero plans to remove support for 14 blockchains that have low activity, following a security breach at KelpDAO. Chainlink has reportedly benefited the most from LayerZero's difficulties, according to the article.

Confirmed

Global impact / market context

Cutting low-activity chains means LayerZero focuses its resources on busier networks. This could reduce costs and improve reliability, possibly making its technology more attractive. Meanwhile, Chainlink may gain more business if developers see LayerZero as less stable after the KelpDAO attack.

Analyst inference

In the crypto market, network reliability is a key asset because hacks can scare away users. A rival like Chainlink winning from LayerZero’s problem suggests investors may shift toward the more trusted option. This could push LINK prices up if that trend continues.

Analyst inference

What to watch

1. Watch whether LayerZero officially names the 14 chains it will stop supporting, as this detail was not yet confirmed in the article. Confirmed
2. Consider tracking trading volume or usage data on those unnamed chains to see if users leave them after the removal announcement. Proposed
3. Observe if Chainlink continues to gain partnerships or price momentum, since the article identifies it as the biggest winner already. Analyst inference

Affected assets

• LINK — Chainlink

Evidence

• ambcrypto.com