API3, a DeFi data feeds service enabling blockchain-based smart contracts without third-party reliance, has recently secured $4 million in a funding round spearheaded by DWF Labs.
DWF Labs, a market maker and multi-stage Web3 investment firm, led the funding round with a substantial contribution of $2 million. Additionally, Spartan Group added $1 million to the funding, while Laser Digital and Caladan (formerly AlphaLab) each contributed $500,000.
The raised funds are earmarked to bolster API3’s liquidity, supporting its ongoing growth strategy. Specifically, the company plans to allocate resources to marketing endeavors and business development initiatives.
API3 reports a staggering 4900% surge in its Total Secured Value (TSV), skyrocketing from $20 million to over $1 billion. This exponential growth is attributed to the integration of new chains, such as the Optimism Superchain ecosystem, X-Layer, and Worldcoin.
According to Andrei Grachev, Managing Partner of DWF Labs, API3’s impact on decentralized application oracle utilization is evident through its remarkable TSV growth. Grachev expresses enthusiasm for future collaboration, envisioning a landscape where real-world data is seamlessly accessible and verifiable on-chain.
Operated as a Decentralized Autonomous Organization (DAO), API3 operates under a digital management structure governed by smart contracts, ensuring transparency and reliability in decision-making processes.
The fundraising success of API3 is reflective of broader trends in the cryptocurrency sector, as PitchBook reports a surge in fundraising activities, reaching $2.4 billion in Q1 2024. The bullish market conditions during this period have been instrumental in driving investment activity, with a notable 40.3% increase in investments compared to the previous quarter.
