Solana Labs, the team behind high-performance blockchain Solana, disclosed today that it has completed a private token sale.
The project raised $314.15 million in a round led by major crypto venture capital firms, Andreessen Horowitz (a16z) and Polychain Capital. Other notable participants include Alameda Research, Sino Global Capital, CoinShares, Jump Trading, and a host of others.
The new capital would primarily be allocated towards growing Solana’s decentralized finance (DeFi) ecosystem. Solana Labs will set up an incubator studio and a trading desk, as well as a venture investing arm that will fund projects being built on Solana.
Anatoly Yakovenko, co-founder and CEO of Solana Labs, said in the announcement,
We are convinced that scalability and throughput in blockchain are now a solved problem. The next phase is onboarding a billion users.
The Solana network, which launched last year, prides itself on being a high-performance blockchain, handling as many as 50,000 transactions per second and charging the lowest fees for any existing competitor.
Solana is among the many projects banking on Ethereum’s delayed network upgrades to lure developers to build on their blockchain. While average network fees on Ethereum can cost $6 or even higher during peak network periods, Solana’s current fees stand at $0.0002 per transaction.
The Solana DeFi ecosystem is also rapidly onboarding new projects with the Solana Season Hackathon offering as much as $1 million in funding to help projects bootstrap their offering. While projects such as Serum, Raydium, and StableSwap are gaining traction in Solana’s ecosystem, the blockchain is still well behind Ethereum in terms of deployed projects and capita
Solana (SOL) Jumps 15%
Solana’s native token, SOL, has already had a stellar year and recorded a 15% increase following the news of the latest funding.
SOL is trading at $42.9 at the time of writing, with its $11 billion market cap meaning it is ranked 11th on the list of largest cryptocurrencies.
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Author: Wilfred Michael