TLDR:
- Paradigm leads a $225 million funding round into a new layer-1 blockchain network.
- The new network aims to compete with Solana and improve on Ethereum’s shortcomings.
Crypto-focused VC firm Paradigm has led a $225 million funding round into Monad Labs, a new layer-1 blockchain network that is poised to rival established networks like Solana. Monad Labs aims to provide a faster and more cost-effective smart contract network than Ethereum, addressing the high gas fees experienced during network congestion. The new L1 network will be 100% compatible with the Ethereum Virtual Machine (EVM) and capable of handling up to 10,000 transactions per second (TPS).
Keone Hon, the founder of Monad Labs, highlighted the two years of development that went into creating the new L1 network, emphasizing the focus on pure execution and performance enhancements. The funding round comes at a time when VC interest in crypto investments is on the rise, with other projects like Mezo, a Bitcoin layer-2 network, also securing significant funding.
In addition to the funding round for Monad Labs, Paradigm is reportedly in talks to raise up to $850 million for a new fund, indicating a growing appetite for crypto investments in the industry. The positive trend in crypto VC funding has seen a resurgence in the first quarter of 2024, with funds invested rising by 38% compared to the previous quarter.
