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Solana blockchain is reportedly raising $450 million as it works on expanding network functionality to potentially take on Ethereum.
Solana is Raising $450 Million to Combat Ethereum
Solana is aiming to raise $450 million in a funding round that was set to close but instead expanded in March to take on Ethereum’s leadership in the Defi ecosystem.
The project is part of a group of emerging blockchain projects called “ethereum killers,” which seeks to mimic the functionalities of Ethereum while improving on the network’s fees and gas problems.
Originally intended for “a smaller round” it was later on expanded due to big capital interested in backing the project.
While there is still no official confirmation on the exact figure raised by Solana, these funds would be used to encourage developers to build and bring their already existing projects to the network and gain market share, a necessary step for an emerging blockchain.
Solana has experienced a rise in popularity due to its very low transaction fees and the use of its token platform by the FTX exchange that allows deposits and withdrawals from this network.
For instance, last year, FTX CEO Sam Bankman-Fried opted to build its Serum decentralized exchange on top of the Solana blockchain instead of the Ethereum network owing to its attractive features.
Solana Claims to be Superior to Ethereum
Plagued with network congestion and high transaction fees, which reached an all-time high of $70.8 in May, Ethereum has struggled to meet the booming demand for DeFi products, most of which are hosted on the platform.
On the other hand, Solana claims to be technically superior to Ethereum that offers to process more than 50,000 transactions per second (TPS), while Ethereum averages between 10 and 15 transactions per second.
Despite this, Etheruem could become more efficient after its critical update set to go live next year after transitioning the network to proof-of-stake from proof-of-work.