DeFi Data Firm API3 Raises $4M in Funding Round Led by DWF Labs

CryptoNews.com

2024-05-29 05:10:36

Tanzeel Akhtar

Last updated:

May 29, 2024 09:10 EDT | 1 min read

API3, a service that provides DeFi data feeds to blockchain-based smart contracts without relying on a third party, has raised $4 million in a funding round led by DWF Labs.

Market maker and multi-stage Web3 investment firm DWF Labs led the funding round and contributed $2 million.

Other funding came from Spartan Group which contributed $1 million. Laser Digital, a digital asset business backed by Nomura, and Caladan formerly known as AlphaLab both contributed $500,000 each.

The funding raised will be used to provide API3 with liquidity to help ute its ongoing growth strategy. API3 will use the funding for marketing efforts, and business development initiatives.

TSV Increased From $20M to Over $1B

API3 said its total secured value (TSV) has increased by 4900% from $20 million to over $1 billion. The data feed firm said it has integrated with new chains including the Optimism Superchain eco, X-Layer and Worldcoin.

“API3’s transformative impact on how decentralised applications utilise oracles has been demonstrated by the substantial growth in their total value secured,” said Andrei Grachev, managing partner of DWF Labs.

“We look forward to building a strong collaboration moving forward to contribute toward a future where real-world data is seamlessly accessible and verifiable on-chain,” said Grachev.

API3 operates under a decentralized autonomous organization (DAO) structure. This is a digital management structure governed by smart contracts with decisions recorded and made on a blockchain.

Fundraising Soars to $2.4B in Q1 2024

The crypto market is seeing a significant surge in fundraising, reaching $2.4 billion in the first quarter of 2024.

The latest data from PitchBook, a leading data provider for private and public market investors, shows there has been a substantial increase in investment activity within the cryptocurrency sector compared to the previous quarter.

The bull market witnessed during Q1 played a pivotal role in driving the surge in investments. PitchBook reports a total of 518 deals amounting to $2.3 billion were closed in the first quarter of this year. This reflects a remarkable 40.3% increase in investments compared to the previous quarter.

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