LayerZero's ZRO jumps 10% after venture firm Andreessen Horowitz acquires the company for $55 million
The venture capital firm's acquisition of ZRO follows previous investments in the protocol.
Author: Christian Sandor | Edited by: Stephen Alpher Updated: April 17, 2025, 6:48 PM Published: April 17, 2025, 6:18 PM
What you need to know:
- LayerZero (ZRO) token has seen a significant surge after Andreessen Horowitz's (a16z) crypto arm purchased an additional $55 million worth of tokens.
- The investment carries a three-year lock-up period and follows previous funding rounds in 2022 and 2023.
- LayerZero provides cross-chain communication for 125 blockchains and supports projects such as the Wyoming stablecoin issuance.
Interaction token LayerZero (ZRO) rose significantly on Thursday amid news that venture capital firm Andreessen Horowitz's (a16z) crypto arm has increased its investment in the project.
The company purchased an additional $55 million worth of ZRO tokens with a three-year lock-up commitment, general partner Ali Yahya said in a post to X. A16z was an early investor in LayerZero Labs' protocol development, participating in a $135 million Series A funding round in 2022 and a subsequent $120 million Series B round in 2023.
ZRO rose 10% to $2.56 after the announcement before giving up some of its gains. The token has recently gained about 5% on the day, outpacing the broader CoinDesk 20 Index and Bitcoin (BTC).
LayerZero is a key infrastructure that enables communication between isolated blockchains via cross-chain messages. The protocol supports 125 blockchains, has handled over 145 million cross-chain messages, and $75 billion in value transfers. Its technology powers projects like PayPal stablecoin, DeFi protocols Ethena and Pendle, and has been selected as a release partner for the Wyoming stablecoin project.
According to the email, the investment will help the protocol expand its functions, including token issuance, data management, governance, and database improvements.
