Coinspeaker
Rollup Platform AltLayer Raises $14.4M in Funding Round
In these first few weeks of 2024, we’ve seen many exciting projects in the crypto space raise funds and become more publicly visible. The overall air of excitement in the industry has created an environment for promising projects to get the support that they need.
One of the latest of these comes from AltLayer, a rollup-as-a-service platform that recently raised $14.4 million in its latest funding round. This round was co-led by Polychain Capital and Hack VC and saw support from the likes of OKX Ventures, HashKey Capital, Bankless Ventures, and others.
All About AltLayer
While the news of this round was only made public this week, it closed officially in September of last year. The $14.4 million that was raised will be going towards expanding the AltLayer team and improving its infrastructure. And this isn’t the only major milestone that AltLayer has celebrated.
In January 2024, its native ALT token officially hit the market, and several groups of users airdropped some of it. Those who staked on Celestia and EigenLayer, participated in AltLayer campaigns, or held its NFTs were given a collective 300 million ALT tokens, which are valued at $131 million. This also represents a whopping 3% of the total token supply.
All this success clearly shows that there is a demand for blockchain rollups. The sort of service that AltLayer offers is a layer-2 blockchain that lets users process their transactions on specific networks but with lower costs and faster speeds. Not only do the users themselves enjoy these benefits, but the networks in question are less burdened with computational responsibilities.
In the last few years, especially, there has been a lot of pressure on major blockchain networks to enhance their scalability. Anyone who has followed Ethereum, for example, will know that an entire class of cryptos sprung up from this need. As the crypto industry is set for one of its most optimistic years ever, the need for scalability and, thus, rollups will be much higher.
With the crypto ETFs, the halving, and the increasing values of major tokens, we will see more people using blockchain networks, so this is a good time for AltLayer. In the wake of its successful funding round, AltLayer has also shed some light on its upcoming projects.
First, it plans to recreate the restaked rollups framework by using the Bitcoin network. In collaboration with the top blockchain project Babylon, AltLayer plans to secure external networks. This is expected to be rolled out in the next few months, and depending on how the overall industry’s market trajectory unfolds, it could end up being very profitable for the company.
