Blockchain News

Polygon Raises Layer-2 Stakes with $450 Million Finance Round

Sequoia Capital India led the funding round for Polygon, a layer-2 solution for Ethereum that is potentially a game changer.

Battle for Layer-2

Polygon raised $450 million from top Venture Capital (VC) firms and has been leading the pack as the preferred layer-2 solution for the Ethereum network. Capital continues to flow into platforms that support Web3 development and Polygon fits into this category. 

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Kevin O'Leary, a Canadian billionaire investor from the famous Shark Tank reality show participated in the funding round. More than 40 venture capital funds backed this funding round including the likes of Softbank Vision Fund 2, Tiger Global, and Galaxy Digital

“The platform of choice to build on the blockchain today is Polygon. Thousands of developers across a range of applications are choosing Polygon and their complete set of scaling solutions for the Ethereum ecosystem,” said Shailesh Lakhani, Managing Director at Sequoia India.

Polygon believes that the Ethereum network will prevail over its other competitors in the race to provide the base application platform for Web3. The funds from this raise will also go into investing into zero-knowledge technology which is believed to be Ethereum’s solution to scalability. 

Built for Web3

The Polygon team is aiming to provide a complete suite of solutions similar to what Amazon Web Services (AWS) did for Web2.  Polygon is preparing itself for Web3 with Polygon PoS, Polygon Edge and Polygon Avail. Polygon PoS is the current execution layer with low fees and is able to process transactions at a high speed, secured by the Ethereum mainnet. 

Source: Polygon believes that zero knowledge solutions will solve the issue on congestion 

Polygon Edge, allows for projects to build custom blockchains and in the future, Polygon Avail will play the role as a general-purpose, scalable data availability-focused blockchain targeted for standalone chains, sidechains & off-chain scaling solutions.

Polygon’s Popularity

Polygon continues to grow leveraging Ethereum's popularity as the dominant layer-1 solution. It is the leading execution layer on the Ethereum network. Polygon generates 3 million transactions a day which is 2.5 times more than the Ethereum network.  

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Polygon remains a popular choice for many users with its robust ecosystem. Projects building on Web3 will grow exponentially in the next few years and Polygon will be one of the preferred platforms.

Polygon’s ($MATIC) price took a beating in the market wide selldown but has since recovered and is currently trading at around $2.00. Polygon plays an essential role in a decentralized web that is both fast and secure and for the same reason, it is catching the eyes of institutional investors. 

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