Venture capital heavyweight Andreessen Horowitz (a16z) has deepened its bet on LayerZero, committing $55m to the crosschain messaging protocol’s native token, ZRO.
The fresh investment, which comes with a three-year lockup, was revealed by a16z general partner Ali Yahya in a post on X on April 17.
ZRO rose as much as 10% following the announcement, before retracing gains to hover around $2.39.
The move signals renewed institutional confidence in LayerZero, even as crypto markets remain sensitive to broader macroeconomic instability and the growing impact of global trade tensions.
Canada’s LayerZero has emerged as a key player in the push for crosschain interoperability, building tech that lets decentralized apps talk to each other across different blockchains.
LayerZero Continues to Attract Big-Name Investors
The company launched its ZRO token in June 2024 and had already caught the attention of investors with a $3b valuation during its Series B funding round in April 2023. That round drew backing from more than 30 firms, including Sequoia Capital, Circle Ventures and OpenSea Ventures.
This is not a16z’s first involvement with LayerZero. The firm led an initial investment in March 2022 and participated again in the 2023 Series B round. The latest capital injection strengthens a partnership that has remained resilient despite recent turbulence in the industry.
LayerZero Moves Past Legal Challenges as Crosschain Race Intensifies
In Jan. 2025, LayerZero settled a legal dispute with the FTX estate over allegations it had taken advantage of the exchange’s liquidity crisis. The case underscored the legal scrutiny facing protocols operating in grey areas of decentralization and centralized finance, but it did little to dent LayerZero’s growth trajectory.
With competition heating up in the crosschain space, LayerZero faces pressure from rivals like Wormhole, which raised $225m at a $2.5b valuation last year. Others including Connext and Stargate are also racing to become the default infrastructure for interoperable blockchain ecosystems.
Despite the crowded field, LayerZero has continued to expand its influence, tapping into a growing trend of applications moving toward chain-agnostic infrastructure. The shift has already prompted major players like Phantom and Magic Eden to broaden their blockchain support in pursuit of a wider user base.
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