The funding round also saw participation from other notable investors such as Electrical Capital, Sreeram Kannan from EigenLayer, Anatoly Yakovenko from Solana Labs, Uri Klarman from bloXroute, and Justin Drake and Mike Neuder from the Ethereum Foundation, among others. This funding comes after Ellipsis Labs previously raised $3.3 million from Electric Capital in August 2023.
Ellipsis Labs, known for its Solana-based decentralized exchange (DEX) called Phoenix, plans to utilize the raised funds to enhance its decentralized finance (DeFi) technology infrastructure. Phoenix is currently ranked among the top 5 spot DEXs across all blockchains in terms of daily trading volume and holds a total value locked (TVL) of $14.31 million. The platform facilitates trade settlements without the need for a “crank,” enabling asynchronous trade executions and enhancing efficiency.
The company is also in the process of expanding its team and has opened job positions for engineers to join its New York office.
Meanwhile, Paradigm’s involvement with Ellipsis Labs is part of its broader investment strategy in the cryptocurrency space. The firm is reportedly seeking to raise a significant amount of capital for a new fund.
As the cryptocurrency market continues to show promising growth in 2024, venture capital firms are increasingly active. Multicoin Capital, for instance, recently disclosed its leadership in a $225 million funding round for the cross-chain messaging protocol Wormhole, indicating sustained investor interest in blockchain projects.