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The crypto industry is experiencing a surge of investor interest, marked by significant funding rounds and strategic moves that hint at a market rebound.
Movement Labs, SoSoValue, and a potential acquisition of FTX's EU business have captured headlines this week, showcasing the sector's evolving dynamics as regulatory clarity and market stability rekindle optimism.
Movement Labs, a blockchain development firm based in San Francisco, is nearing the completion of a $100 million Series B funding round, according to a report by Fortune on Wednesday, citing sources familiar with the deal. Led by CoinFund and Brevan Howard, the raise positions Movement Labs for a $3 billion valuation. The funds will fuel infrastructure enhancements, expand the company’s footprint in the Asia-Pacific region, and support team growth.
With its unique integration of Facebook’s Move Virtual Machine and Ethereum, Movement Labs aims to create a developer-friendly layer 2 blockchain solution. This innovative approach has distinguished it from standalone Move-based blockchains like Aptos and Sui, drawing significant investor attention.
On a smaller scale, AI-driven crypto research platform SoSoValue closed a $15 million Series A round, securing a $200 million valuation, the company said in a statement. The funding, co-led by HSG and SmallSpark, will accelerate the development of the SoSoValue Spot Index (SSI) Protocol, an index investment tool designed to simplify crypto investing for retail participants.
The SSI tokens, launched on Base chain in December, allow investors to track multi-asset portfolios in a stress-free, rebalancing format. With over 8 million users and rapidly growing adoption, SoSoValue says it is positioning itself as a leader in democratizing access to actionable crypto investment tools.
Adding to the action this week is the acquisition of FTX EU by crypto startup Backpack, which was reported by Coindesk. However, the report has sparked controversy. Backpack claimed to have purchased the Cyprus-based unit for $32.7 million, enabling plans to offer derivatives and perpetual futures in Europe, but FTX’s bankruptcy team has contested the deal, stating it lacks court and regulatory approval.
These developments come against the backdrop of a recovering crypto market. Total crypto market capitalization recently approached $4 trillion, and venture capital activity has rebounded alongside easing regulatory pressures and interest rate cuts. According to PitchBook, global venture dealmaking rose 5% in 2024, creating a favorable environment for crypto startups to secure funding.
Even amid lingering skepticism, the surge in investment activity highlights growing confidence in crypto as an asset class. The combination of innovative blockchain infrastructure, democratized financial tools, and strategic acquisitions points to an industry poised for sustained growth.
