TL;DR
- Solv Protocol has raised $11 million in funding, reaching a $200 million valuation, allowing it to expand its SolvBTC product.
- Investments come from Nomura’s Laser Digital, Blockchain Capital, and OKX Ventures.
- Despite the growing popularity of staking, BTC’s staking rate remains lower than Ethereum’s; reaching a similar level could unlock up to $330 billion in value.
Bitcoin staking protocol Solv has announced the acquisition of $11 million in a recent funding round, reaching a valuation of $200 million.
Investors include Nomura subsidiary Laser Digital, Blockchain Capital, and OKX Ventures. This capital will allow Solv Protocol to expand its operations and further develop its SolvBTC product, which already has over 20,000 BTC staked, equivalent to approximately $1.3 billion. These funds will be crucial for the protocol’s growth in the staking platform market.
Announcing $25M in total fundraising to pave the way for mass adoption of Bitcoin staking, powered by our recently launched Staking Abstraction Layer (SAL).
— Solv Protocol (@SolvProtocol) October 14, 2024
In recent years, various Bitcoin staking platforms and protocols have emerged with the aim of tapping into the potential of the hundreds of billions of dollars in capital currently held in BTC. Staking, which involves offering digital assets to help finance the operation of a blockchain network in exchange for rewards, has gained popularity due to its ability to generate returns, similar to earning interest on bank accounts.
Solv Protocol Earns Its Place in the Bitcoin Staking Market
Competitor platform Babylon has demonstrated significant demand for staking services, having accumulated over $1.5 billion in staked BTC in just two funding rounds over a short period. However, these figures remain below those of Ethereum staking platforms, where Lido manages approximately $23.7 billion in collateral, and EigenLayer holds around $10.9 billion.
Ryan Chow, co-founder of Solv, highlighted in the announcement that Bitcoin’s market value exceeds $1.2 trillion, representing a significant growth opportunity. However, BTC’s staking rate still lags far behind Ethereum’s 28%. If Bitcoin were to reach similar staking levels, this could unlock an estimated $330 billion in value.
The capital injection from the new funding round will not only strengthen Solv Protocol’s position in the market but could also influence the overall growth of Bitcoin staking, promoting its adoption and expanding earning opportunities for BTC users
