Bitcoin Layer 2 Network Bitfinity Raises $7M in Funding Rounds at $130M Valuation

UTC by Temitope Olatunji · 3 min read
Bitcoin Layer 2 Network Bitfinity Raises $7M in Funding Rounds at $130M Valuation
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The first “seed” round in 2021 raised around $1 million, while the  “growth” round carried out later concluded in June 2023 accounted for the remaining $6 million.

According to a report by The Block, Bitfinity, an emerging blockchain project building a Bitcoin Layer 2 network, has secured a total of $7 million in funding over two token funding rounds. With the most recent round valuing the project at an impressive $130 million, Bitfinity aims to enhance decentralized finance activities on the Bitcoin blockchain upon launching its mainnet network.

The funding rounds attracted notable crypto investors like Polychain Capital, Warburg Serres, Dokia Capital, and Draft Ventures. The first “seed” round in 2021 raised around $1 million, while the  “growth” round carried out later concluded in June 2023 accounted for the remaining $6 million.

Bitfinity’s co-founder Max Chamberlin strategically announced the funding amounts and valuation in anticipation of the project’s upcoming mainnet launch, slated for either late January or early February. Generating hype leading up to the launch marks a key milestone for Bitfinity as its network transitions from the current testnet phase.

Leveraging the Speed of Internet Computer Protocol

Bitfinity is a Layer 2 network that extends the functionality of Bitcoin while also benefiting from its superior security. However, what sets Bitfinity apart is its technical architecture, which is built on the Internet Computer protocol (ICP). According to Chamberlin, the decision to build Bitfinity on the ICP brings about substantial advantages in terms of speed and scalability.

He specifically mentioned that Bitfinity’s compatibility with the Ethereum Virtual Machine (EVM) allows developers to deploy decentralized applications (dApps) on Bitfinity much faster than on Ethereum. In fact, Chamberlin claimed that it can be done 100 times faster and at a significantly lower cost compared to ETH. He said:

“Bitfinity will not only handle Bitcoin Ordinals and BRC-20 tokens but also EVM assets, the Bitfinity EVM will enable the deployment of EVM dApps with speeds 100 times faster than Ethereum and at a fraction of the cost.”

Bitfinity has already attracted several dApps to its platform, thanks to its support for the EVM. Some of the dApps that have joined Bitfinity include Sonic, Synthetix, and Liquity.

By allowing Solidity developers to take advantage of Bitfinity’s fast processing speed and almost no transaction fees, dApps now have more opportunities to explore new and innovative ways to use Bitcoin. This combination of advanced functionality and Bitcoin’s reliable security features makes Bitfinity an appealing choice for developers and users alike.

Gearing Up for Mainnet Launch

Bitfinity currently employs around 20 team members but plans to expand headcount to 25 following the upcoming mainnet launch. The hiring process aims to further enrich the project’s ecosystem by broadening its feature set.

Additionally, several cryptocurrency exchanges are expected to list Bitfinity’s native token after its mainnet debut. This presents an opportunity to improve liquidity and accessibility for the token.

Overall, Bitfinity’s impressive funding rounds place it in a strong position to capitalize on Bitcoin’s expanding functionality through layers like Ordinals and BRC-20. By merging Bitcoin’s security with the Internet’s speed, Bitfinity makes a compelling case for becoming a go-to platform for developers interested in crafting innovative dApps.

Blockchain News, Cryptocurrency News, News
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