3 months ago
25 ARTICLE AD
As blockchain networks and Layer 1 and Layer 2 chains multiply, user bases and liquidity become fragmented, leading to subpar experiences for users and developers. Particle Network addresses this issue with its unified Layer 1 blockchain.
Binance Labs, the venture capital division of popular crypto exchange Binance, has committed support to another innovative solution in the Web3 space. It has announced an investment in Particle Network, a leading Layer 1 blockchain solution. As per the official press release, the new funding aims to address the tricky problem of user and liquidity fragmentation in the Web3 world.
The exact amount of the investment remains undisclosed. However, Particle Network plans to use the funds to expand its global team and improve the functionality of its popular Chain Abstraction solution. Also, it will use some of this funding to launch its Layer 1 Mainnet in a secure and efficient way by late 2024.
The announcement comes just days after the leading crypto trading platform unveiled the seventh season for the Binance Labs Incubation Program, which is focused on nurturing and developing unique
Particle Network’s Solution
As blockchain networks and Layer 1 and Layer 2 chains multiply, user bases and liquidity become fragmented, leading to subpar experiences for users and developers. Particle Network addresses this issue with its unified Layer 1 blockchain, featuring Chain Abstraction infrastructure.
This system simplifies Web3 by allowing a single account and balance across all chains, eliminating manual bridging and asset management. Users can enjoy seamless asset interactions, cross-chain swaps, and eventually, the ability to pay for gas in any token.
It is interesting to note that the Particle Network is liked by several notable investors in the crypto industry. This includes Animoca Ventures, LongHash Ventures, and Alibaba Group. Moreover, in June, it secured $25 million in funding from prominent names like Hashkey Capital and Morningstar Ventures, furthering its efforts in chain abstraction.
The Particle ecosystem has gained massive popularity recently. In July, several new projects integrated its services into their ecosystem, including gaming and AI layer CARV, popular consumer network Moca Network, and Bitcoin ZK Rollup Layer 2 solution SatoshiVM, among others.
Pengyu, the founder of Particle Network, expressed his excitement about the investment from Binance Labs. He states that this collaboration will help in greater adoption and better user-friendliness of Web3 space.
Binance Labs’ Role in Web3 Development
According to Grand View Research, the global Web3 market is expected to grow at a compound annual growth rate (CAGR) of 49.3% from 2024 to 2030. This rising demand has led Binance Labs to actively contribute to the growth of the space.
In 2022, it raised $500 million for a fund dedicated to Web3 start-ups, supporting both early-stage and late-stage growth. Last year, the venture capital arm invested $15 million in Xterio to support its Web3 gaming initiatives and incorporate AI technologies.
Notably, in November last year, the exchange announced its own self-custody crypto wallet, called Binance Web3 Wallet.
However, despite these developments, Binance has been losing significant market share to other exchanges. The firm is facing scrutiny from regulators around the globe, including the government of India and the United States government. Authorities in France and Nigeria have also brought down the regulatory hammer, claiming that the exchange did not have proper permits to operate in the region.
Further, the former chief executive and co-founder Changpeng Zhao is facing prison time after the exchange confirmed a $4.3 billion settlement with the United States Department of Justice.
