Both Bitcoin and all other cryptocurrencies are in a bearish trend. As such, there are layoffs, downsizing and income drops in crypto companies and stock markets. In the past days, layoffs at cryptocurrency exchanges Coinbase, Gemini and Rain have come to the fore.
Even when the price of Bitcoin was very high, the Governor of New York, who decided to buy his salary with Bitcoin, made a statement and stated that he did not regret this decision in the face of falling markets.
With all markets falling and in the midst of a bear market, Ethereum scaling firm StarkWare and their solution StarkNet received a valuation of $8 billion.
Ethereum developer StarkWare has launched a $100 million Series D funding round at a valuation of $8 billion. StarkWare's previous valuation was $2 billion. This shows that the company has appreciated 4 times in the middle of the bear market.
Other investors include Tiger Global, Paradigm, Three Arrows Capital and Sequoia Capital.
Uri Kolodny, co-founder and CEO of StarkWare, used the following statements in a statement;
“We closed this deal amid a bear market for crypto, emphasizing the strength of investor confidence in StarkWare scaling.”
The Tel Aviv, Israel-based company uses Zero Knowledge rollup technology to increase the efficiency of Ethereum without sacrificing security or decentralization. Rollup technology involves a computationally intensive process that instead of adding transactions one by one to the blockchain, aggregates thousands of transactions into a single batch away from the main layer of Ethereum.
It then writes all these transactions to the blockchain using only an 80 kilobyte file. The company boasts that the thousands of transactions they send to the Ethereum mainnet are very small in size, describing it as much less than the size of a photo on a smartphone. This 80 kilobyte file serves as proof of the rollup. This evidence system belongs to a class of privacy-enhancing and scaling technologies called STARKs, invented by StarkWare co-founder and president Eli Ben-Sasson and other computer scientists.
Using this technology, StarkWare built StarkEx, a scaling engine that helps companies use Ethereum more efficiently. Since its launch 18 months ago, StarkEx has processed 173 million transactions with a total value of $602 billion, helping its customers significantly reduce gas costs on the network. For example, while decentralized exchange dYdX might cost 200,000 gas (about $12 at current prices) to make a transaction on Ethereum's main tier, StarkWare's solution cuts that cost by less than a quarter. Other major clients StarkWare serves include sports company Sorare and Immutable X.
Additionally, the company has launched StarkNet, a scaling network that allows developers to deploy decentralized applications at well below the cost of using Ethereum's mainnet. SDKs offered by StarkWare for developers have been downloaded more than 100,000 times. Kolodny says:
"Having this many downloads just a few months after Alpha went live is a very strong sign of developer interest."
The market is currently very ambiguous after the $50 billion collapse of the algorithmic stablecoin TerraUSD and its sister token LUNA and other macroeconomic uncertainties.
StarkWare founders state that the companies that invest in them do not invest because of the ETH and Bitcoin price today, tomorrow or next week, but because of the vision they have for the next 5-10 years.