ConsenSys plans funding round at $3 billion valuation
October 11, 2021, 12:12PM EDT
1 min read
Ethereum-focused software company ConsenSys is raising again — and this time at a valuation of $3 billion, according to sources familiar with the matter. The Financial Times first reported the news over the weekend.
This latest funding effort comes at a time of considerable growth in the Ethereum space as the use of non-fungible tokens continues to pick up. It also comes at a time of reinvention for the Brooklyn-based firm.
In February of 2020, it underwent a major restructuring that divided its software and investment arms and reduced its staff by 14%. The restructuring saw ConsenSys split into two different companies: a venture firm and a developer of cryptocurrency products. The latest raise is for the latter, according to sources close to the matter.
It's also the second raise in the past six months for ConsenSys. The firm raised $65 million via convertible note, with investors including JPMorgan, UBS, Mastercard, Alameda Research and the Maker Foundation.
In the wake of the raise in April, the firm's Ethereum wallet MetaMask crossed 5 million active users. At the time, MetaMask use had quintupled in six months, according to ConsenSys. The Block's data dashboard shows new address creation on the Ethereum network, which includes providers outside of MetaMask, continues to grow despite declining since April of 2021.
Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.