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Ethereum L2 Boba Network Worth $1.5B After Series A

Hybrid computing platform Boba Network has joined the “crypto unicorn” rankings after raising $45 million in Series A funding, underscoring the investment attractiveness of Ethereum Layer 2 scaling solutions.

Several crypto-focused venture funds participated in the funding round, including Infinite Capital, Hypersphere, 10X Capital, Hack VC, GBV, Sanctor Capital, Shima Capital, Kinetic Capital, IOST, and ROK Capital. Contributions also came from Will Smith-led Dreamers VC, Paris Hilton’s M13, and several crypto industry founders from projects such as Origin Protocol, The Graph, FEI Labs, and exchange giants Crypto.com and Huobi.

Series A valued Boba Network at $1.5 billion, giving the company the unique distinction of being called a unicorn. In the startup world, a unicorn is a company that has a valuation of at least $1 billion. The crypto industry crowned dozens of unicorns in 2021 as venture funds spent over $25 billion to acquire stakes in burgeoning blockchain companies.

The Boba network was built by Enya, a decentralized infrastructure provider, and launched in 2018. The project largely flew under the radar until the launch of its mainnet and BOBA governance token in September 2021. The BOBA token is intended to fuel the development of the network as a decentralized autonomous organization, or DAO.

Related: Former Polychain GP Unveils $125M Crypto Fund With DAO Governance Ambitions

Boba is described as Ethereum’s next-generation Layer 2 scaling solution that aims to solve many of Ethereum’s biggest problems while expanding its smart contract capabilities. Boba’s developers said the funding will go towards expanding internal capacity and investing in ecosystem projects that leverage the expertise of Web3 industry leaders.

While digital asset prices are a far cry from their previous highs, Ethereum Layer 2 networks are clearly gaining traction. The total locked value (TVL) on such networks recently surpassed $7.2 billion, which is a new all-time high, according to L2 Beat. The sector’s TVL was less than $1 billion as of September 2021. In comparison, the TVL of the DeFi sector has yet to match its all-time high set in November.

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The TVL for Layer 2 scaling solutions has increased significantly over the past eight months. Source: L2 Beat