Etherium Blockchain Firm ConsenSys to Reach $3 Billion Valuation after Latest Fundraising Deal
Etherium blockchain startup ConsensSys is currently raising funds and is expected to reach a $3 billion valuation. The startup has made significant profits in recent months owing to the booming decentralized finance landscape.
The company is on the brink of closing the funding deal that will take its valuation to $3 billion. In April this year, ConsenSys announced that it had successfully raised around $65 million from investors. Some of the popular investors involved in the “formation round” were UBS, Mastercard, and J.P. Morgan. As of now, the firm has not commented on the latest fundraising.
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Major Landmark for ConsenSys
The fundraising will be a major milestone for the blockchain startup that was founded by Ethereium co-founded Joseph Lubin. It seems like Lubin has overcome multiple public missteps in his quest to leverage blockchain technology.
In the past few years, ConsenSys has cut down on its workforce by ten percent at least twice. The company has restructured itself over the past year and seems to have completely split off its investment arm into a different entity altogether.
In 2021, investors have shown tremendous interest in digital assets. As the price of Bitcoin and other popular cryptocurrencies move in the upward direction, it has attracted new developers and investors to this booming yet risky sector.
According to data provided by PitchBook, venture capital firms have invested around a whopping $20.7 billion in cryptocurrency startups in 2021. That is an impressive 160 percent growth since 2018.
ConsenSys’s major funding has come from Lubin’s personal ‘ether’ holdings.
MetaMask and its Relationship with ConsenSys
MetaMask is an application developed by ConsenSys which is a noteworthy gateway to decentralized finance programs. The adoption of this application has expanded exponentially as more and more people are interested in cryptocurrencies. Since the start of October 2020, MetaMask has enabled over $8.9 billion of trading. A feature of the app allows users to exchange pairs of digital tokens in tune with the data available on Dune Analytics, a cryptocurrency analysis website.
According to the Ethereum blockchains startup, the annualized revenues from MetaMask could grow by $1 billion in the next year. Venture capitalists are also eyeing investment opportunities in different start-ups that create applications on Ethereum.
More about ConsenSys
ConsesnSys was founded in 2014 by Ethereum’s co-founder and is based in New York. The firm invests in and also develops projects that are built on the Ethereum blockchain technology.
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Feature Image Source: Image by WorldSpectrum from Pixabay
