Andreessen Horowitz (a16z) has been a huge contributor to the success of the LayerZero (ZRO) omnichain protocol. On Thursday, Ali Yahya, General Partner at a16z crypto, announced that the venture capital firm has invested an additional $55 million in LayerZero by purchasing ZRO tokens.
According to the announcement, a16z will lock the purchased ZRO tokens for the next three years.
“Our global financial system is evolving, and it’s great to see the protocol enabling many new businesses and complex workflows to move on-chain,” Ali noted.
A16Z’s Deep Connection With LayerZero
In the past few years, a16z has been a key supporter of the LayerZero protocol. The venture capital firm participated in LayerZero’s Series A+ round in 2022, which closed with $135 million raised and a valuation of about $ 1 billion.
In 2023, a16z was among the 33 participants who helped LayerZero raise $120 million in its Series B, thus tripling its valuation to $3 billion.
The strategic investment in LayerZero has helped it build the necessary infrastructure to enable a trustless inter-chain communication protocol with the help of ZRO tokens.
Impact on ZRO
Following the announcement, ZRO price rallied over 5 percent in the past 24 hours to trade about $2.49 on Thursday, during the mid New York session. The mid-cap altcoin, with a fully diluted valuation of about $2.49 billion and a 24-hour average trading volume of around $66.6 million, has been forming a potential reversal pattern.
From a technical analysis standpoint, ZRO price has been forming a potential inverse head and shoulders (H&S) pattern coupled with a bullish divergence of the daily Relative Strength Index (RSI). As a result, a consistent close above the resistance level around $3.26 will trigger a rally beyond $5.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
