According to Blockworks, following the successful implementation of Ethereum's Dencun upgrade, which significantly reduced gas fees on many layer-2s, the layer-2 ecosystem has become a focal point for funding announcements. Layer-2 infrastructure startup Espresso recently announced a $28 million Series B funding round led by a16z crypto, with participation from various layer-2-related firms such as Polygon, StarkWare, and Arbitrum developer Offchain Labs. Espresso is primarily known for developing a shared sequencer for layer-2s, which allows rollups to order and process transactions through a shared marketplace instead of their own execution environments, potentially increasing interoperability between layer-2s.
In addition to Espresso, two other layer-2 projects announced significant funding rounds. Morph, a consumer-centric blockchain project, raised $20 million in seed funding led by Dragonfly, with participation from Pantera, Foresight Ventures, and The Spartan Group. Meanwhile, the developer behind privacy-focused layer-2 TEN (The Encrypted Network) raised $9 million in a funding round led by R3.
As crypto prices continue to rise, derivatives exchanges, where traders can speculate on future crypto asset prices, are gaining popularity. Rails, a self-custody-focused perpetuals exchange, emerged from stealth mode with $6.2 million in seed funding from investors including Slow Ventures, Round13 Capital, CMCC Global, and Quantstamp. Additionally, institution-focused derivatives infrastructure startup Kemet announced $5 million in funding led by Further Ventures.
Other notable fundraises in the crypto space include zero-knowledge infrastructure developer Succinct's $55 million Series A led by Paradigm, real-world asset tokenization startup MANTRA's $11 million funding round led by MENA-based Shorooq Partners, and Sonarverse's $7 million funding round led by BlockTower Capital for an on-chain data platform aimed at institutional investors.
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