Andreessen Horowitz Invests $55M in LayerZero to Back Cross-Chain Future
LayerZero, the protocol aiming to bridge blockchain ecosystems, just secured a serious show of support from one of crypto’s most influential backers.
Venture capital firm Andreessen Horowitz, through its crypto arm a16z, has injected $55 million into the project—this time through a direct purchase of ZRO tokens, which will remain locked for the next three years.
Ali Yahya, a general partner at a16z crypto, described the move as more than just an investment—it’s a commitment to the evolving financial landscape that LayerZero is helping to shape. As blockchain infrastructure matures, LayerZero’s role in enabling seamless interoperability across chains is becoming increasingly central, Yahya suggested.
This latest round of support is far from a one-off. a16z has been backing LayerZero since its earliest funding stages, joining a $135 million raise in 2022 that valued the protocol at $1 billion. By the time the Series B closed in 2023, LayerZero had tripled its valuation to $3 billion—with a16z once again taking a seat at the table.
The protocol’s mission is ambitious: enable decentralized apps to operate smoothly across multiple blockchains. ZRO, its native token, plays a core role in securing and incentivizing the infrastructure that makes this possible. With this investment, LayerZero is expected to continue scaling its omnichain framework and solidify its position in the interoperability race.
The market response to a16z’s announcement was immediate. ZRO saw a price bump of over 5%, reaching $2.49 during Thursday’s U.S. trading hours. With a market cap nearing $2.5 billion on a fully diluted basis and active daily volume topping $66 million, the token is now drawing renewed attention from both traders and long-term holders.
Technically, analysts are watching for a breakout. Recent price action shows signs of a possible inverse head-and-shoulders pattern, backed by a bullish divergence on the daily RSI. If ZRO breaks past the resistance near $3.26 with conviction, some expect the next leg to carry it north of $5.
More than just another funding headline, a16z’s investment is a clear bet on LayerZero’s future as a key pillar of cross-chain infrastructure—and one that’s built to last.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
