LayerZero’s ZRO Surges by 10% After Andreessen Horowitz Invests $55M.

Andreessen Horowitz Increases Stake in LayerZero with $55M Investment, Boosting ZRO Token’s Value

LayerZero’s native token (ZRO) saw a notable increase in price on Thursday after Andreessen Horowitz (a16z) revealed it had expanded its investment in the blockchain interoperability protocol.

The venture capital firm’s crypto arm secured an additional $55 million worth of ZRO tokens, committing to a 3-year lock-up period, as disclosed by Ali Yahya, general partner at a16z, in an X post. This marks a continuation of a16z’s early backing of LayerZero Labs, having previously participated in the $135 million Series A round in 2022 and the $120 million Series B round in 2023.

Following the announcement, ZRO climbed 10%, reaching $2.56, before experiencing a slight pullback. However, the token remained up by 5% on the day, outperforming both the broader CoinDesk 20 index and Bitcoin (BTC).

LayerZero provides critical infrastructure for blockchain communication, enabling cross-chain messages between isolated blockchains. The protocol supports 125 blockchains, has processed over 145 million cross-chain messages, and handled $75 billion in value transfers. Notable projects leveraging LayerZero include PayPal’s stablecoin, decentralized finance platforms Ethena and Pendle, as well as Wyoming’s state-backed stablecoin initiative.

This new investment will allow LayerZero to broaden its focus beyond interoperability, with plans to enhance token issuance, data management, governance, and database optimization, according to company reports.