Paradigm leads $225M funding round for new ‘Solana killer’ L1

A venture capital firm specializing in cryptocurrency, called Paradigm, is spearheading a $225 million investment in a fresh layer-1 blockchain network. This new network aims to challenge the dominance of Solana and other leading blockchain networks in the market.

Monad Labs, a blockchain company, finished raising funds for their project. Their goal is to construct a fresh smart contract network using layer-1 technology, promising quicker transaction speeds and reduced expenses in contrast to Ethereum.

After a two-year long development process, Monad Labs’ founder Keone Hon revealed to Fortune in an interview that they have officially announced their funding round.

“We’re emerging from roughly two years of development… At a time when a lot of the research community was focused on roll-up, data availability, and other directions of scaling, Monad basically went really deep on the pure execution side.”

According to Monad’s March 14 post, the latest version of L1 (the first layer in a blockchain system) will perfectly synchronize with the Ethereum Virtual Machine (EVM). It has the potential to handle up to 10,000 transactions per second.

Although Ethereum is known for decentralized finance (DeFi), it has drawbacks, such as exorbitant gas fees during times of network overload. Monad Labs intends to address these issues by launching an execution-focused L1 (Layer 1) platform. Hon shared with Fortune:

“We realized there was a huge need for a more performant EVM, and that in spite of this need, no one was really working on this problem.”

Crypto VC funding continues to rise

The new investment round was announced during a period of increased VC interest in crypto firms.

On April 9, Bitcoin layer-2 network Mezo successfully raised $21 million in Series A funding, with Pantera spearheading the investment round. Mezo offers investors the opportunity to generate returns based on token holding duration. In their own words, they refer to it as a “Bitcoin Economic Infrastructure.”

On April 3rd, there were news of Paradigm seeking to secure up to $850 million for a fresh fund, marking the biggest fundraising in the crypto sector since May 2022 when a16z, a prominent Silicon Valley VC firm, closed a historic deal worth $4.5 billion.

In the opening three months of 2024, investment in cryptocurrency ventures showed improvement after a two-year lull. The amount of capital infused grew by nearly 40% compared to the final quarter of 2023, as indicated by data from Crypto Koryo’s analytics.

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2024-04-09 16:19