Saturday, May 18, 2024

Blockchain.com Raises $110 Million in Funding Round as Crypto Market Declines

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In a recent funding round led by Kingsway Capital, cryptocurrency platform Blockchain.com has successfully raised $110 million. The investment comes from major firms such as Baillie Gifford, Lakestar, LSVP, and Coinbase Ventures, reaffirming the growing interest in the blockchain industry. Notably, Blockchain.com has evolved from a blockchain explorer tool to a widely used cryptocurrency wallet, facilitating over $1 trillion in lifetime transactions. Despite the recent downturn in the crypto market, the company’s revenue has grown an impressive 1,500% over the past four years.

Representatives from Kingsway Capital and Lakestar will join Blockchain.com’s board of directors, enhancing the platform’s decision-making processes and strategic planning. This infusion of capital and expertise will undoubtedly propel Blockchain.com to new heights, allowing them to further innovate and expand their range of services.

On the same day, the crypto market experienced significant declines, with Bitcoin’s price briefly dropping to $34,970. As of the time of writing, it was trading at $35,300, representing a 3.7% decline in the past 24 hours. Ethereum also struggled, losing the $2,000 level it had recently regained. Other major altcoins also faced declines. In contrast, traditional markets demonstrated optimism, buoyed by positive inflation data and reassurances from the Federal Reserve regarding interest rates.

Despite the challenging day for cryptocurrencies, investment management firm Grayscale remains optimistic about the long-term prospects for digital assets. Slower inflation and lower bond yields are expected to support prices in the future. However, market speculation suggests that the decline in crypto prices may be attributed to sellers locking in profits ahead of potential delays in the approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). Many anticipate further delays in the approval process this week.

Meanwhile, ConsenSys’ Layer2 network Linea is preparing to release Alpha v2, an upgraded version promising lower transaction costs and faster transactions. Alpha v2 will utilize blobs to store call data on Ethereum’s Layer 1 during the Dencon upgrade, effectively reducing Rollup costs. The team behind Linea is also focused on compressing data sent to Layer 1 and aggregating proofs to lower fixed transaction costs. Additionally, Linea plans to reduce block time to 4 seconds, increase transaction speed by three times, and introduce a mechanism for further reducing block time in the future. Linea supports both Besu and Geth for client diversity, replacing Linea-Geth with Linea-Besu.

While volatility persists in the crypto market, the recent funding round for Blockchain.com underscores the continued growth and potential within the blockchain industry. As the sector evolves and matures, investors and innovators alike are recognizing the vast opportunities that blockchain technology presents. It is an exciting time for the industry as funding and advancements pave the way for a more robust and accessible blockchain ecosystem.

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