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- Optimism, an Ethereum L2 (Layer 2) rollup solution, has raised $150 million in a Series B fundraising round led by notable names in the venture capital (VC) world.
- A16z and Paradigm led the investment round, with the former having previously invested in the prior round. The importance of these scaling methods for Ethereum’s future is being debated by venture capitalists.
- With this financial inflow, the scaling solution was valued at $1.65 billion, considerably above unicorn status.
Optimism Gets Support To Continue Its Growth
In its Series B fundraising round, Optimism, a service that facilitates low-fee Ethereum transactions, received a $150 million investment. The deal, which was led by A16z and Paradigm, raised $1.65 billion for the company, making it one of the most valuable L2 Ethereum extension layers.
VCs are debating the importance of these scaling methods for Ethereum’s future. While Ethereum costs have recently been quite cheap, this was nearly never the case throughout the current bull market. L2 alternatives arose to placate consumers who did not want to suffer the pinch of paying these often high costs. One of these solutions is Optimism, which is built on Optimistic rollups, which take L1 (Layer 1) data and process it in batches in L2, before returning the reduced data to Ethereum.
According to corporate estimates, Optimism has already saved its consumers $1 billion in gas fees and has over $469 million in TVL (total value locked) on its platform, making it the fourth-largest rollup in this category, according to L2beat data.
Users were told about how the donations would be used in a blog post by Optimism. In order to continue delivering features, the company plans to add more workers to supplement its already large crew. Optimism currently has 18 job vacancies across many areas, ranging from software development to financial positions.
This current round of fundraising follows the company’s Series A capital round, in which A16z led a $25 million investment. Optimism’s “tight adherence to Ethereum development paradigms results in a very straightforward transition for developers, wallets, and users: no new programming languages, little code changes to existing contracts necessary,” according to the startup.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
