Binance leads $2.4 million funding for Polkadot's (DOT) Plasm Network

Binance has led a $2.4 million Series A funding for a multi-VM smart contract platform Plasm Network, which is based on the Polkadot platform.

According to the report, the Plasm Network is designed to be an EVM-compatible, interoperable, and scalable network. It is designed and based on layer2 solutions such as Zk Rollups and Optimism Virtual Machine (OVM).

The investment will be the first Binance Lab has undertaken in its $10 million funds for the support of projects in the Polkadot network.

Improving Plasm’s scalability

The funding will help Plasm Network bridge the Binance and Polkadot communities, expand resources and business development, accelerate research and development, and facilitate more BTC trading.

The network is a para-chain framework touted to provide support for Ethereum and layer2 scaling solutions.

Binance Labs is the incubator and venture capital of the Binance crypto exchange. In August last year, the company invested $1.25 million in Audius, a decentralized streaming protocol. Two months later, it led a $12 million funding round for a multi-chain asset hub MATH, which is behind MathWAllet.

Polkadot’s token DOT hits all-time high

Apart from Binance Labs, there were other contributors, notable from PAKA Ventures, Digital Finance Group, LongHash, as well as HashKey.

Plasm will use the Polkadot ecosystem, which is a blockchain network that utilizes multi-chain technology to ensure better scalability compared to networks built on a single blockchain.

Head of Binance Labs Weigh Zhou commented on the development by praising the network.

He further stated that Binance has shown its commitment to the support of the Polkadot ecosystem by supporting Plasm. Binance will continue working with Polkadot as part of both companies’ commitments towards industry growth.

In response to the funding, Polkadot’s native token DOT rose in the market, gaining 20% within 24 hours and reaching an all-time high of $23.80. It could also lead more people to invest in DOT.