After its steep drop on May 6, when Solayer (LAYER) fell from $3.10 to under $2 in just a few hours, the coin hasn’t found much relief. The price continued to slide over the past week and now hovers near $1.10 – erasing the entire rally from April and early May.
That puts the token back where it was in late March, before its breakout. It raises a simple question: was the rally ever based on anything more than hype?
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From Rally to Reversal
The crash on May 6 was sudden – a 30% loss in a matter of hours. But what followed was worse: a slow, grinding drop over the next days. At its current levels, LAYER is down roughly 67% from all-time high set on May 5.
Since May 9, the token has mostly stabilized, trading between $1.10 and $1.25. That may suggest the market has found a base, but it also points to a total breakdown of momentum. The hype that carried Solayer through April is gone – and without new catalysts, the price has drifted back to its pre-pump level.
Community Trust Is Getting Tested
The Solayer team has not publicly addressed the price collapse. No statement, no reassurance. That silence has become its own problem. With the Mantra (OM) crash still fresh in many investors’ minds, some LAYER holders have lost confidence in the project.
Some comments on X show growing frustration. Accusations of scams and rugpulls are present under every post, pointing to the lack of transparency and the absence of any market-related updates from official channels.
Investors are also frustrated because the broader market conditions have been bullish. Bitcoin is up 24% over the past month, Ethereum surged 65% and Solana has gained 38%. But Solayer is down 43% – in that context, the underperformance stands out even more.
What Has the Team Been Doing?
While price action goes unmentioned, the Solayer team hasn’t been silent overall. The focus has shifted toward marketing the Emerald card, promoting discounts, bonuses, and use cases tied to the Solayer payment ecosystem.
They’ve also been teasing Season 2. A new community allocation is set to unlock today, with the released tokens expected to be directed toward new incentive structures. The team is likely hoping Season 2 can kickstart the attention again – though the climate now is more skeptical.
There’s also talk of a new product launch at the end of May, though details remain vague.
Still Building – But Questions Remain
Functionally, Solayer is still doing what it set out to do: enabling restaking for SOL and liquid staking tokens like mSOL and JitoSOL, and rewarding users through sSOL. None of that has changed.
But the combination of steep price losses, no communication around the crash, and weak price action despite strong market conditions has started to wear on sentiment. The longer the silence lasts, the harder it gets to keep investor confidence intact.
The tech may still be progressing. But for many holders, the first impression left by the May 6 drop – and the absence of any reassurance since – hasn’t faded.
Read also: Mantra (OM) Still Struggles: 4 Reasons Investors Aren’t Coming Back
