Immutable X, an Ethereum-based layer 2 scaling solution for non-fungible tokens (NFTs), said it recently raised $60 million in a Series B round of funding, which was co-led by BITKRAFT Ventures and King River Capital.
According to a press release shared with CryptoPotato today, Immutable also received investments from a host of crypto-related and venture capital firms. These include Alameda Research, Galaxy Interactive, Apex Capital, VaynerFund, Fabric Ventures, Reinventure, and AirTree Ventures.
The new cash injection, which brought the firm’s total funding to $77.5 million, will be allocated to the expansion of the project’s global engineering and sales teams, and foster its partnership with blockchain gaming companies.
Furthermore, Immutable noted that the funds will be used to facilitate the growth of its in-house published NFTs games, Gods Unchained and Guild of Guardians.
Scaling NFT Projects on Ethereum
Since its launch, Immutable has been focused on developing the Ethereum-based NFT ecosystem by allowing businesses to create and trade the collectibles on the network.
With several NFTs and decentralized applications built on the Ethereum blockchain, the network has suffered lots of constraints, including higher traffic resulting in slow and expensive transactions.
Based on the congestion of the Ethereum blockchain, Immutable was launched to address some of these challenges and provide a better scalable solution for NFTs built on the network.
With the Immutable X platform, NFT developers can take advantage of its instant transaction processing capability, which is capable of processing 9,000 transactions per second.
NFT creators and traders will not be required to pay gas fees using Immutable, the announcement added.
Robbie Ferguson, a co-founder at Immutable X, said the current NFT market is inefficient as trading the tokens has become expensive and illiquid.
He added that existing scaling solutions that are supposed to address these challenges have ended up compromising the security and user base of the Ethereum network.
“We want businesses to create their game, marketplace, or NFT application within hours via APIs, with a mainstream user experience. No blockchain programming required,” Ferguson added.
NFT Games Massive Growth
It is no longer news that the NFT sector, especially blockchain gaming, has recorded significant growth since the beginning of the year, with over $10 billion worth of digital assets traded across various marketplaces.
The gaming industry, which is expected to be valued at almost $200 billion in revenue, is tipped to grow bigger based on its integration with NFT and blockchain technologies.
With the potential of NFT games, firms are looking for ways to benefit in the long term by investing in NFT-related projects.
As reported, popular NFT marketplace OpenSea announced in July that it raised $100 million from notable investors, bringing its total valuation to $1.5 billion.
