Summary
Two layer-1 blockchains compatible with Ethereum’s software secured significant funding this week, with Monad raising $225 million and Berachain closing a $100 million Series B funding round. Monad aims to deliver a more performant EVM, while Berachain plans to introduce a “proof-of-liquidity” consensus mechanism. Crypto VC activity is warming up, with institutions showing more interest in the space. Lessons learned from the previous cycle emphasize not investing in risky projects that could lead to losses. Other notable funding news includes Auradine closing an $80 million Series B and Alpen Labs securing a $10.6 million seed round.
Key Points
1. For venture capitalists looking for significant returns on their crypto investments, layer-1 blockchains that are compatible with Ethereum’s software are a popular bet.
2. Monad, developing a parallel EVM, raised $225 million in a round led by Paradigm, while Berachain, an EVM-compatible layer-1 built with Cosmos’ SDK, closed a $100 million Series B funding round co-led by Brevan Howard Digital’s Abu Dhabi branch and Framework Ventures.
3. Monad promises to deliver a much more performant EVM, hitting 10,000 transactions per second in testing, while Ethereum often sits around 15 TPS. Berachain is set to introduce a “proof-of-liquidity” consensus mechanism to improve upon Ethereum’s proof-of-stake by addressing limitations around liquidity and centralization.