Binance Labs Invests In Solana Restaking Network Solayer
Binance Labs has invested in a Solana restaking network, Solayer, gaining notable attention from the market. The investment primarily focuses on enhancing the Solana ecosystem by boosting decentralized application (dApp) security and network bandwidth. Following the announcement, Solana’s price surged by 2%, reflecting market optimism despite volatile trading noted in the broader market.
Binance Labs Invests In Solayer
Binance Labs, the venture capital arm of Binance, has made an investment into Solayer, a leading restaking network on Solana. Solayer aims to secure on-chain dApps and improve network bandwidth while reinforcing Solana’s Layer 1 (L1) security. This investment underscores the investor’s commitment to advancing the cryptocurrency ecosystem.
Meanwhile, Solayer operates natively on Solana, leveraging proof-of-stake (PoS) principles to extend Solana’s security to other decentralized systems and dApps. This approach allows users to participate in a decentralized validator network, enhancing the overall security and functionality of the Solana ecosystem.
By staking assets, users can help decentralize Solana, earn yields through MEV-boost, and benefit from delegated Actively Validated Services (AVS). In less than 60 days since its phase 1 launch, Solayer has become the 13th largest protocol on Solana, with over $150 million in Total Value Locked (TVL) and more than 70,000 unique deposit addresses, the update showed.
Yi He, Co-Founder of Binance and Head of Binance Labs, has lauded the development, citing Solayer’s dominance in the Solana space. He said that the partnership primarily focuses on the growth of crypto ecosystems. Besides, he emphasized that the firm is committed to supporting early-stage projects.
This move is expected to further boost the vibrancy of the Solana ecosystem, driving innovation and development in the crypto space. However, the terms of the partnership have not been disclosed.
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A Closer Look Into The Report
The report notes that with the new funds from Binance Labs, Solayer plans to expand its team, integrate new protocols into its ecosystem, and establish itself as a core component of the Solana blockchain. The team will also focus on addressing Solana’s network congestion issues using restaking infrastructure.
Meanwhile, Solayer aims to roll out a full system soon, allowing stakers to use SOL to secure both Solana and its dApps, ensuring better network bandwidth and transaction throughput. In addition, the platform will explore general asset restaking to secure exogenous AVS, systems external to Solana.
Jason, Co-Founder of Solayer Labs, has applauded the development, citing Binance Labs’ strong support as a key factor in driving progress toward their vision. The investment is expected to empower Solayer to deliver greater value to decentralized applications (dApps) on Solana.
This investment has sparked optimism in the market, evidenced by a 2% rise in SOL price despite overall market volatility. However, the trading volume of the crypto dipped nearly 17% to $5.46 billion during writing.
Also Read: Will Solana Price Hold 18% Gains As $25M Liquidations Raise Concerns
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