LayerZero gains $55 million boost as a16z deepens support

Venture capital firm Andreessen Horowitz (a16z) has invested $55 million in LayerZero (CRYPTO:ZRO), a cross-chain messaging protocol, marking a significant commitment to the Web3 infrastructure provider.

The investment, disclosed by a16z general partner Ali Yahya, involves the purchase of LayerZero’s native ZRO tokens with a three-year lock-up period.

This latest funding round builds on a16z’s previous support for LayerZero, which included initial investments in March 2022 and participation in the company’s Series B round in April 2023.

While the valuation for this round was not disclosed, LayerZero was valued at $3 billion during its last Series B funding, which attracted participation from 33 investors, including Circle Ventures, OKX Ventures, OpenSea Ventures, and Sequoia Capital.

LayerZero’s technology enables communication across 125 blockchains, facilitating over 145 million cross-chain messages and managing $75 billion in value transfers.

The protocol is integral to projects such as PayPal’s stablecoin, DeFi platforms like Ethena (CRYPTO:ENA) and Pendle (CRYPTO:PENDLE), and has been selected as a partner for Wyoming’s state-backed stablecoin initiative.

Following the announcement, LayerZero’s ZRO token surged by 10% to $2.56, reflecting renewed investor confidence and outperforming broader crypto market indices.

The funds from a16z’s investment will be used to expand LayerZero’s capabilities, including token issuance, data management, governance, and database improvements.

“We believe LayerZero is critical infrastructure for the future of blockchain interoperability, and our continued investment reflects our confidence in their vision and execution,” Ali Yahya commented.

The cross-chain messaging sector is becoming increasingly competitive, with protocols like Wormhole (CRYPTO:W) and Chainlink (CRYPTO:LINK) also developing solutions for blockchain interoperability.

At the time of reporting, the LayerZero (ZRO) price was $2.40.