The Blockchain Race Heats Up: Movement Labs Raises $38 Million for Layer 2 Ethereum Blockchain
Movement Labs, a San Francisco-based software development team, has closed a $38 million funding round to build a layer 2 Ethereum blockchain, Fortune has exclusively learned. The Series A was led by Polychain Capital, with participation from other digital-assets-focused investors including Hack VC, dao5, and Robot Ventures.
This funding round comes at a time when other companies building new blockchains are also securing sizable investments. Monad Labs recently raised $225 million to build a layer 1 blockchain, while Berachain announced a $100 million Series B. The influx of capital into blockchain projects reflects a resurgence in crypto-focused venture investments, but also highlights the competitive landscape for companies aiming to create the next Bitcoin or Ethereum.
Movement’s founders, Rushi Manche and Cooper Scanlon, hope to differentiate their project by building the first layer 2 blockchain atop Ethereum that utilizes Move, a programming language originally developed by Facebook for its Diem stablecoin project. By bringing Move to Ethereum, Movement aims to provide developers with the security and performance of a next-generation virtual machine.
The company plans to announce its devnet soon and aims to launch its mainnet in the late summer or early fall. Movement Labs also intends to launch its own token, tentatively named Move.
The proliferation of new blockchains may seem excessive to some, but developers have been grappling with speed and cost issues on existing blockchains like Ethereum. Layer 2 solutions and new layer 1 blockchains like Solana have emerged to address these challenges, but congestion issues persist.
Movement Labs is positioning itself as a bridge between Ethereum and Move, offering developers a more intuitive programming language while still being part of the Ethereum community. With plans to make the Move Virtual Machine adoptable by other blockchain networks, Movement is aiming to create a thriving ecosystem that leverages the security and capabilities of Move.
As the blockchain race heats up, Movement Labs’ innovative approach could help it stand out in a crowded field of competitors vying to build the next generation of blockchain technology.
