Quick take:
- Monad Labs plans to use the capital to develop a layer-1 blockchain rivalling the likes of Solana and Sui.
- The EVM-compatible L1’s main focus is on improving execution speeds capable of 10,000 transactions per second (TPS).
- Last month, Fortune first announced Monad was raising over $200 million for an L1 blockchain.
Monad Labs a blockchain startup building a high-performance layer-1 has completed a $225 million funding round led by Paradigm and joined by Electric Capital and Greenoaks, fortune reported.
The announcement comes just weeks after Fortune in March reported that Monad was in talks to raise more than $200 million for an L1.
According to the announcement, Monad is developing an Ethereum Virtual Machine (EVM)-compatible layer-1 focused on the execution side of the blockchain ecosystem. The company plans to improve transaction speeds while further lowering fees compared to Ethereum.
Speaking to Fortune on Tuesday, Keone Hon, the founder of Monad Labs said: “We’re emerging from roughly two years of development… At a time when a lot of the research community was focused on roll-up, data availability, and other directions of scaling, Monad basically went really deep on the pure execution side.”
Unlike many L1s, Monad’s 100% EVM-compatible platform will enable developers building on Ethereum to port their projects onto the Monad platform.
Monad describes its platform as a decentralized, developer-forward Layer 1 smart contract platform focused on addressing the shortcomings of Ethereum, including high gas fees during network congestion.
“We realized there was a huge need for a more performant EVM, and that in spite of this need, no one was really working on this problem,” Hon told Fortune.
The Monad devnet launched last month following two years of development. At the time, the company said in an X post in March that its platform is capable of 10,000 transactions per second.
This announcement comes at a time when crypto fundraising is gaining momentum following 18 months of a bear market. Last month, crypto startups raised over $1.1 billion in funding to complete a bullish first quarter of VC activity in the industry.
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