1. Token Unlock and increase in supply: LAYER has undergone a significant token unlock, leading to an increase in supply in the market. This sudden expansion in supply may have prompted some whales (large investors) to sell large amounts of tokens, negatively impacting the price.
2. Unbalanced distribution structure: Only about 21% of the total supply of LAYER is currently in circulation, while the remainder is still locked. This means that a few whales control a large portion of the tokens, making the market susceptible to large fluctuations when they sell.