Blockchain.com, a prominent cryptocurrency exchange and wallet service, has successfully closed a $110 million Series E funding round.

The funding was led by UK-based Kingsway Capital, with participation from notable investors including Baillie Gifford, Lakestar, Lightspeed Venture Partners, and Coinbase Ventures.

The platform itself claims 37 million verified users, 82 million wallets, and a total transaction value of more than a trillion dollars across its platform.

The Rise And Fall Of Blockchain.com

The strategic financing round adds Kingsway Capital and Lakestar representatives to Blockchain.com's board. Although the company's valuation was halved from its peak of $14 billion in the spring of 2022, the latest funding marks a significant development following a challenging period for Blockchain.com.

Last fall, the company received strategic financing from Kingsway, and in March 2022, it completed a funding round that doubled its estimated value to $14 billion. However, the crypto market downturn in 2022 posed challenges, revealing the company's exposure to the collapse of the Three Arrows Capital hedge fund, resulting in layoffs.

The cryptocurrency market experienced a rebound in 2023, with Bitcoin's price doubling amid optimism about the potential approval of a Bitcoin exchange-traded fund (ETF). This resurgence in digital asset prices has reignited venture capital investments in the crypto sector.

Blockchain.com's Series E funding reflects a trend of renewed investor interest, indicating a growing appetite for crypto-related ventures. The broader market sentiment is influenced by pending applications for spot Bitcoin ETFs from major financial firms like BlackRock and Fidelity.

Bitcoin (BTC) has shown a remarkable 116% increase in the past year, with other major cryptocurrencies such as Ether (ETH) and Solana (SOL) recording gains of 61% and 300%, respectively, over the same period.