Monad Labs has raised $225 million from Paradigm, Electric Capital, and Greenoaks to enhance blockchain technology.

The investment will fund the development of an Ethereum-based blockchain that is faster and more scalable, set to launch by end of 2024.

CEO Keone Hon emphasized the new blockchain's parallel execution capabilities, aiming to improve consumer crypto applications.

The initiative involves rebuilding Ethereum to increase transaction speed, volume, and reduce costs, while remaining compatible with Ethereum's existing tools.

Concerns about state bloat and efficiency have been noted, prompting Monad Labs to perform extensive testing ahead of the mainnet release.

The funding reflects a trend of venture capital interest in blockchain innovation and indicates an expanding investor base in the crypto market.