Cathie Wood Touts LayerZero's Interoperability Business

ARK Invest CEO Cathie Wood recently posted on X that many investors overlook the critical role LayerZero (ZRO) plays in cross-chain messaging. She praised the founding team behind the interoperability protocol, saying that most investors do not appreciate its importance.

This sentiment was echoed by ARK's director of research for digital assets, Lorenzo Valente, who wrote two days earlier that LayerZero's interoperability business alone will likely reach nine-figure annual recurring revenue (ARR).

LayerZero is a messaging protocol that relays verified messages between blockchains that cannot otherwise communicate. It supports over 170 networks and has processed $280 billion in cumulative value transferred and accounted for 44% of cross-chain volume in the first half of 2023.

Despite Cathie Wood's endorsement, traders have not yet followed her lead, with ZRO trading near $1.04, down about 6% on the day. However, its monthly performance is stronger, adding around 36% over the past month.