Boba Network Valuation Hits $1.5B After $45M Series A Round

The layer-2 scaling solution’s first fundraise will allow it to address Ethereum’s “computational limitations”

article-image

Blockworks exclusive art by axel rangel

share

key takeaways

  • Crypto exchanges Crypto.com, Huobi and BitMart participated in the round
  • Boba Network announced the mainnet launch of its layer-2 Optimistic Rollup in September

Ethereum layer-2 scaling solution Boba Network has raised $45 million in a Series A round that values the decentralized autonomous organization (DAO) at $1.5 billion. 

The capital will address Ethereum’s “computational limitations and foster greater functionality for decentralized applications” through Boba’s Hybrid Compute platform, the project announced Tuesday.

“Everyone else was focused on making Ethereum faster and cheaper, which of course is necessary, but there’s an additional dimension of scalability that’s been neglected — computational complexity,” Boba Network Founder Alan Chiu told Blockworks in an email.

Crypto exchanges Crypto.com, Huobi and BitMart participated in the round, as well as more than a dozen crypto funds. Other investors included Will Smith, Keisuke Honda, Paris Hilton, Carter Reum, Tony Robbins and Joe Montana.

“Layer 2 innovations are among the most exciting products being developed in the crypto space today, none more so than Boba Network,” Bobby Bao, managing director of Crypto.com Capital, said in a statement. “Boba is developing industry-leading solutions such as Hybrid Compute to scale Web3, so we’re thrilled to be on board.”

Developed by OMG Foundation core contributor Enya, Boba Network aims to deliver a faster and cheaper experience for the next billion Ethereum users.

Boba Network was based on the Optimism codebase to help accelerate its entry to the market, though it offers certain differences, Chiu said. These include offering additional cross-chain messaging, providing a community fraud detector and automatically relaying 7-day exit messages to layer-1, according to its website.

Boba’s Hybrid Compute protocol allows developers to leverage advanced algorithms that are either too expensive or impossible to execute on-chain. After the off-chain computations are executed, the protocol sends the result to the smart contract within the same transaction.

“Smart contracts on Boba can call any external API, so suddenly you can do machine learning off-chain and have the results come back to your smart contract atomically, meaning in the same transaction in the same block,” Chiu said.

Boba also offers a bridge to move non-fungible tokens (NFTs) between layer-2 blockchains to Ethereum’s layer-1.

With the mainnet launch of its Optimistic Rollup in September, OMG Foundation revealed at the time the upcoming release of its BOBA token to support the network’s decentralized governance.

Since launch, its market capitalization has fallen from a Dec. 24 peak of $626 million to $160 million in early March and now stands at $264 million.

The network’s TVL currently comes in at $171 million, which puts it in sixth place among Ethereum rollup-based layer-2s, according to L2beat. Optimism — which does not yet have a token — is third, with about four times the TVL (total value locked).

Venture capital firm a16Z and Paradigm led a $150 million Series B funding round for Optimism last month, bringing its valuation to $1.65 billion.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2023

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research Report Cover Vertex.jpg

Research

The proliferation of new perp DEXs has led to fragmented liquidity across various DEXs and chains. Vertex, known for its vertically-integrated DEX that includes spot, perpetual, and integrated money markets, is now tackling cross-chain liquidity fragmentation through horizontal integration with the launch of new Edge instances. Vertex's integrated offerings and cross-margined account structure amplify the benefits of new instances: native cross-chain spot trading, optimized cross-chain basis trading, consistent interest rates, reduced bridging friction, and more.

article-image

Partnering with EtherFi and Angle, the fully on-chain perp DEX features bespoke collateral

article-image

Sponsored

Gavin Wood introduced the next evolutionary step for the Polkadot network: the Join-Accumulate Machine, or JAM

article-image

The side events were the places to be at Consensus 2024, according to attendees

article-image

Also, who’s come out swinging in the spot ether ETF fee war — and who could undercut them

article-image

I know it is not in their nature, but US regulators could learn a lot by researching the digital asset frameworks that overseas regulators have already gotten right

article-image

Also, the ETF hype train can count out at least one member