Bitcoin Layer 2 Bitfinity raises token round to $130 million
Bitfinity is developing a blockchain project Bitcoin Bitcoin +4.37% Layer 2 networking is based on: internet computers ICP +7.24% The protocol raised $7 million in total funding.
Bitfinity co-founder Max Chamberlin said in an interview with The Block that investors include Polychain Capital, ParaFi Capital, Warburg Serres, Dokia Capital and Draft Ventures. Chamberlin said the financing comes in two parts: a seed round of about $1 million in 2021 and a growth round for the remainder of the amount that closed last June. He added that both were token rounds, with the second round increasing Bitfinity’s valuation to $130 million.
Chamberlin said Bitfinity chose to announce the funding at this time to build anticipation for its network’s mainnet launch. Currently in the testnet phase, Bitfinity plans to launch the mainnet later this month or early February, according to Chamberlin.
What is Bitfinity?
Bitfinity is a Bitcoin scaling network built on the internet computer protocol. Competitiveness is increasing Ethereum ETH +10.85% Chamberlin said Virtual Machine compatibility will be provided, which will allow Ethereum developers to build Bitcoin-enabled decentralized applications on Bitfinity. “Bitfinity will manage not only Bitcoin ordinals and BRC-20 tokens but also EVM assets,” Chamberlin said, adding: “Bitfinity EVM will enable the deployment of EVM dApps 100x faster than Ethereum and at a fraction of the cost.”
The growth of the Bitcoin ecosystem is seen as an important trend for 2024, driven by the growth of the Ordinals protocol last year. According to CoinGecko data, the protocol’s native ORDI token reached a market cap of $1.5 billion, while BRC-20 tokens collectively have a market cap of $3.43 billion and had a trading volume of over $1 billion in the last 24 hours. Chamberlin said Bitfinity aims to further develop decentralized finance activities on the Bitcoin blockchain.
Various dApps, including decentralized exchange Sonic, derivatives liquidity protocol Synthetix, and decentralized borrowing protocol Liquidity LQTY +19.76% As Chamberlin noted, they are either building on Bitfinity or planning to do so.
“As demand for integrating Bitcoin grows, we believe Bitfinity’s EVM opens the Bitcoin ecosystem to new use cases and applications,” ParaFi Capital managing partner Ben Forman said in a statement. “Solidity developers can now benefit from Bitfinity’s high throughput, low fees, and Bitcoin-specific support.”
There are currently around 20 people working for Bitfinity, and Chamberlin plans to grow the team to around 25 people in the coming months after launching the mainnet and establishing and growing its ecosystem.
Regarding the Bitfinity token, Chamberlin shared that several exchanges are expected to list it after the launch of the mainnet.
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