Uniswap Labs Raises $165M Amid Slowing VC Crypto Funding By DailyCoin

Uniswap Labs, the firm behind the popular decentralized exchange , has raised $165 million in Series B funding, led by Polychain Capital.

This latest funding round valued Uniswap Labs at $1.66 billion, the company said. Long investors in the firm a16z crypto, Paradigm, SV Angel, and Variant also participated in the new round.

Uniswap is the largest DEX protocol in terms of volume. Over 45% of the total flows through the protocol, according to data from DefiLlama. The protocol’s native token UNI has a market cap of $4.4 billion, according to CoinMarketCap.

Uniswap has been recently talking about releasing new products. One of them is the functionality to trade non-fungible tokens (NFTs) from multiple marketplaces on its platform. Uniswap founder and CEO Hayden Adams said that it’s investing to bring expand Uniswap’s presence around the world.

“Now, Uniswap Labs is bringing the powerful simplicity and security that has defined the Uniswap Protocol to even more people across the world by investing in our web app and developer tools, launching NFTs, moving into mobile — and more!” he said.
Hayden also said that as Uniswap Labs focuses on shipping new products and functionality, the Uniswap ecosystem continues to grow on its own in a variety of ways.

“As an example, the governance community recently voted to create the Uniswap Foundation, which will contribute to the Protocol’s decentralized development and give at least $60 million in grants to community projects over the next few years,” he said.
Uniswap’s successful funding round comes amid a slowing venture capital funding market. According to Pitchbook, VC capital inflows into crypto projects fell 37% year-on-year to $4.44 billion in Q3, the industry’s lowest level in more than a year.

The general crypto market has also experienced a massive sell-off. It’s currently valued at $927 billion – down about 58% from its all-time high of just over $3 trillion, according to CoinMarketCap.

On the Flipside

• Trading volume on Uniswap has crashed over 65% over the last month, according to DefiLlama;
• It’s unclear what other products Uniswap Labs are planning on releasing.

Why You Should Care

Uniswap is the largest decentralized exchange. The continuous attention and funding from venture capital firms show that Uniswap Labs still have a lot to offer to its users and investors.

Read about another crypto startup that managed to raise $40 million in a bear market:

Nxyz Raises $40M to Unlock Faster Blockchain Indexing

See original on DailyCoin