Solana & Coin98 Ventures Partner on $5M Fund for Southeast Asian DeFi Developers
The Solana Foundation sets its sights on the Southeast Asian crypto market with a multi-million dollar fund for Asian developers building on its blockchain.
Several companies in the crypto space have set their sights on effective expansion as they look to build on the industry's success last year.
With that in mind, high-performance blockchain project Solana is gearing up to enter the Southeast Asian market.
The Solana Foundation has announced a $5 million development fund targeted at Southeast Asian developers using its blockchain. In a press release, the firm revealed that it had partnered with Vietnam-based investment Coin98 ventures on the initiative, hoping to expand its operations and presence in the region.
The grant is opened to startups and individual developers. To participate, developers should be actively building projects on the Solana blockchain. The Solana Foundation and Coin98 will give preference to projects in the Web3 and decentralized finance (DeFi) spaces.
Participants stand a chance to receive technical, marketing, and community support from the Solana Foundation, in addition to $100,000 in funding. The fund would run for three years, per the release. Solana's executive director Eric Williams said that the partners are looking into creating optimal conditions for Southeast Asian developers to create on the blockchain.
DeFi Focus Benefits Solana
Solana has witnessed significant growth from its laser focus on DeFi. As protocols search for alternatives to the Ethereum blockchain, it has emerged as one of the primary options.
The blockchain is designed as a censorship-resistant project that provides the required infrastructure for global adoption. It made waves in 2020, signing several developers – including Sam Bankman-Fried, the chief executive of the FTX exchange.
Bankman-Fried co-founded a DeFi project named Serum, and he chose to host it on the Solana blockchain. Speaking on his choice, he said on the Defiant Podcast that the growth of the DeFi sector requires additional blockchain options that can provide more scalability than Ethereum.
Bankman-Fried added that he had thoroughly tested 30 of the top blockchains, and Solana impressed him the most. As he explained, the network's ability to process up to 50,000 transactions in a second made it the clear-cut favorite. While the industry eagerly awaits the Ethereum2.0 update from the Ethereum Foundation, Bankman-Fried argued that the upgrade might not be enough to accommodate the needs of the DeFi space.
With more projects like Serum moving to Solana, the blockchain's ability to gain traction is undeniable. It's in-house token, SOL, has also seen significant gains due to increased adoption.
The asset was first listed on exchanges last year, trading around the $0.50 to $0.90 price range. Data from CoinMarketCap shows that the asset has since surged, trading at $3.60 at press time.
As Solana looks to widen its network, it will be interesting to see how the market receives its move. But with a long-term goal of growing a sustainable DeFi ecosystem, that shouldn't be too much of an issue.