Paradigm Leads $225M Investment in Monad Labs for Faster, Cheaper Smart Contract Network
Summary:
Paradigm is leading a $225 million investment round for Monad Labs, which is developing a layer-1 smart contract network faster and cheaper than Ethereum. Fully compatible with the Ethereum Virtual Machine, the new network can handle up to 10,000 transactions per second. This funding comes amid increased VC interest in crypto, with Bitcoin layer-2 network Mezo raising $21 million and Paradigm reportedly looking to raise $850 million. After a two-year decline, crypto venture capital funding rose by 38% in 2024's first quarter compared to its previous quarter.
Paradigm, a venture capital firm with a focus on cryptocurrency, is heading a $225 million investment round targeted at a new base-layer blockchain network. This network is poised to rival leading platforms such as Solana. The fundraising round was orchestrated by Monad Labs, a blockchain company dedicated to creating a faster and more cost-efficient layer-1 smart contract network than Ethereum. Keone Hon, the founder of Monad Labs, revealed to Fortune that they had been developing the project for two years. He noted: “After spending about two years in development, we realized there was a significant need for a more efficient Ethereum Virtual Machine (EVM), an issue that many were overlooking."
The novel layer-1 network will be entirely compatible with the Ethereum Virtual Machine (EVM), supporting upwards of 10,000 transactions each second (TPS). This was shared by Monad in a March 14 X post. While Ethereum is the platform of choice for decentralized finance (DeFi), it is plagued with high transaction costs during periods of network congestion. Monad Labs' solution is to construct an execution-centric layer-1 network that improves upon Ethereum’s weaknesses.
This new round of funding comes at a time when venture capital investment in cryptocurrency companies is surging. Bitcoin's layer-2 network, Mezo, recently completed a $21 million series A funding round led by Pantera on April 9. Mezo offers investors the chance to earn returns based on the duration of their token holding, styling it as "Bitcoin Economic Layer."
News of Paradigm looking to raise an impressive $850 million for a new fund broke on April 3. If successful, this would be the biggest fundraising effort in the crypto sector since May 2022, when Andreessen Horowitz, a venture capital firm based in Silicon Valley, set a new record by raising a whopping $4.5 billion.
Crypto venture capital funding experienced a positive turnaround in the first quarter of 2024, after a dip of two years, with a 38% increase in investments compared to the previous quarter, as per data from Crypto Koryo.
Published At
4/9/2024 4:07:55 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.