Is LayerZero Repeating Optimism’s Mistake?

Yesterday, when I shared news that #a16z invested another $55M into #LayerZero , many pointed out the similarity to their past investment in #Optimisim - right before $OP began its long downtrend.

Let’s recall: In March 2024, Optimism sold 19.5M OP to an undisclosed fund (later suspected to be a16z) with a 2-year vesting schedule, meaning tokens won’t be unlocked until March 2026. Key concerns:

1. No official confirmation from either Optimism or a16z.

2. OP was sold without DAO approval, little transparency on the terms, especially price.

3. The news dropped just before OP hit its ATH on March 10.

So, will follow the same fate?

Key differences:

1. OP news came in a bullish market; $ZRO is facing a much weaker one.

2. OP was peaking; OP is still near bottom but holding relatively well since its TGE at $3.44 (now ~$2.44).

3. Optimism was leading Layer 2s with Superchain hype; LayerZero, while quieter, leads in cross-chain volume.

4. a16z’s buy-in price for both is unknown, making it hard to gauge VC intentions.

Conclusion:

While there are similarities, LayerZero remains strong across all metrics in the cross-chain space. a16z may see real potential here - just like Paradigm did with Across.

A repeat of OP trajectory is possible but, in my view, less likely - LayerZero is still gaining momentum, unlike Optimism, which has lost some shine.