The investment division of Solana Labs, the creators of one of the most efficient non-fungible tokens (NFTs) supporting blockchains, has announced on Tuesday a new $150 million fund to back early-stage crypto gaming projects building on Solana (SOL).
Key takeaways:
- The creation of the new blockchain gaming fund was led by Solana Ventures in collaboration with GameFi startup Forte and venture capital firm focused on blockchain gaming investments Griffin Gaming Partners.
- Solana is one of the better performing crypto assets of the year – the price of SOL has increased over 10,000% since the start of 2021. The primary reason for Solana’s success is the network’s underlying efficiency – Solana can process up to 65,000 transactions per second while having an average single transaction cost of only $0.00025.
- The high efficiency and low cost facilitated by the unique Proof-of-History (PoH) consensus mechanism have made Solana one of the premier blockchain solutions for the rapidly growing crypto gaming sector and non-fungible tokens (NFTs).
- The newly formed fund will be denominated in USD and is expected to be deployed entirely by the halfway point of 2023.
- Blockchain gaming is one of the quickest developing sectors in the broader crypto industry. Exponential growth fueled mostly by new monetization mechanics (such as play-to-earn), and metaverse hype has contributed to one of the largest rallies in crypto history. For reference, GALA and AXS, the second and fourth-largest crypto gainer among the top 100 digital assets by market cap, are up more than 400x and 160x YTD, respectively.
- Last week, Ubisoft became the first major gaming company to implement NFTs directly into one of its flagship games, using Tezos blockchain to power its native Ubisoft Quartz NFTs.
- Following the news about the new fund being launched, the price of SOL increased by nearly 10% and pulled the total market capitalization beyond $50 billion.
