Ethereum has long been a leading player among Layer 1 blockchains. However, with the advancements made by various blockchain companies, alternative Layer 1 solutions have emerged. Additionally, Layer 2 keys to improve the scalability of existing Layer 1 networks are gaining traction in the industry.
Layer 1 blockchains serve as the foundational layer for on-chain transactions, governing the process and recording of transactions. In Web3, Layer 2 refers to off-chain networks or technologies built on top of Layer 1, aiming to expand capabilities, reduce congestion, and enhance scalability through a separate transaction framework.
Recent research by Binance reveals that specific blockchains have attracted more funding than others in 2023. Below is a breakdown of these figures and an overview of the infrastructure that has garnered the most attention from venture capitalists (VCs).
Q1 2023
Scroll has taken the lead in the year’s first quarter, securing $50 million in funding from investors. It is a zkEVM-based type 3 zkRollup on Ethereum, ensuring compatibility with existing applications and tools.
Fetch.ai closely follows Scroll, receiving $40 million during the same period. Fetch.ai is an artificial intelligence and machine learning-based blockchain platform that facilitates data sharing and exchange.
The remaining three projects, Monad, Radix, and Conflux, secured funding as follows:
- – Monad: $19 million
- – Radix: $10 million
- – Conflux: $10 million
Monad is a high-performance Layer 1 blockchain designed to simplify the development of decentralized applications.
Radix uses decentralized finance (DeFi) applications as a Layer 1 protocol.
Conversely, Conflux stands out as a Chinese regulatory-compliant, public, and permissionless Layer 1 blockchain that utilizes Tree Graphs.
Q2 2023
In the second quarter, EOS emerged as the leader of the group with a funding of $60 million. It is a Layer 1 blockchain that utilizes open-source software from the EOSIO foundation.
Berachain secured the second position with $42 million in a Series A round. This blockchain operates on the Cosmos SDK and is EVM-compatible. Its Proof of Liquidity Consensus mechanism stands out, focusing on DeFi.
Sei Network received the third highest funding in Q2, with an investment of $30 million. This general-purpose, open-source Layer 1 blockchain specializes in facilitating the exchange of digital assets.
Following Sei Network are Anoma Network with $25 million and Conflux with $18 million in funding.
Sei Network distinguishes itself with an intent-centric architecture that enables the construction of infrastructure layers and a new operating system for decentralized applications.
Q3 2023
In the third quarter, the leading projects in terms of funding are as follows: RISC Zero with a staggering $40 million, followed by ZetaChain with $27 million, Over Protocol with $8 million, Fhenix and EthStorage, both securing $7 million each.
RISC Zero is a cutting-edge, scalable blockchain incorporating zk-proof technology and RISC-V zkVM. ZetaChain, on the other hand, revolutionizes the industry by allowing omnichannel functionality, generic intelligent contracts, and seamless messaging across various blockchains.
Over Protocol adopts a layer one approach, utilizing the “Ethanos” to empower full nodes to discard outdated data and operate with reduced storage requirements.
Fhenix presents itself as another layer one project, distinguished by its usage of fully homomorphic encryption via them. Lastly, EthStorage takes a layer two approach, providing a dynamic and programmable storage solution.