Cathie Wood Says Investors Are Undervaluing LayerZero’s Cross-Chain Role

ARK Invest CEO Cathie Wood believes investors are underestimating LayerZero (ZRO) and its growing role in connecting blockchain networks. Wood highlighted the interoperability protocol on X, praising both its cross-chain messaging technology and the team behind the project.

Her comments followed analysis from ARK Invest Director of Research for Digital Assets Lorenzo Valente, who argued that LayerZero’s interoperability business could eventually generate nine-figure annual recurring revenue (ARR).

LayerZero provides infrastructure that allows verified messages and data to move between blockchains that otherwise cannot communicate directly. According to ARK Invest, the protocol currently supports more than 170 networks.

Valente said cross-chain messaging has become increasingly important as rollups and application-specific blockchains expand across the crypto ecosystem. Growth in tokenized real-world assets could further increase demand for infrastructure capable of connecting separate blockchain environments.

ARK’s September 3 research report highlighted LayerZero’s scale using data through June. The firm estimated that LayerZero had facilitated $280 billion in cumulative value transfers while accounting for 44% of cross-chain volume during the first half of 2026.

Competition remains significant. Circle’s Cross-Chain Transfer Protocol (CCTP) captured 41% of volume, while Chainlink continues to expand its Cross-Chain Interoperability Protocol (CCIP).

Despite Wood’s bullish comments, ZRO price performance has been weaker in the short term. The LayerZero token was trading near $1.04 after falling roughly 6% on the day, giving it a market capitalization of approximately $368.7 million.

The broader trend has been more positive. ZRO has gained around 36% over the past month after rebounding from its record low of $0.71 on July 31. However, the token remains substantially below its December 2024 all-time high of $7.47.

Token supply could remain a headwind, with monthly ZRO unlocks adding to approximately 353 million tokens already circulating.

Investors should also note that ARK Invest has disclosed financial interests in LayerZero Labs and ZRO. Valente described the nine-figure revenue projection as his own assessment rather than an official ARK forecast, making future revenue and fee growth important indicators for whether the bullish LayerZero thesis holds.