Monad Labs, a blockchain company, has announced that it is raising hundreds of millions of dollars in funding for its new Ethereum Virtual Machine (EVM) compatible blockchain, called Monad. The goal of this new blockchain is to increase the number of EVM-based transactions per second (TPS).

The EVM is widely considered the standard for web3, with over 96% of DeFi capital invested in EVM apps. However, existing EVM-compatible blockchains have low throughput, with Ethereum only supporting around 10 TPS and no EVM rollup achieving more than 50 TPS.

Monad Labs, with $225 million in funding led by Paradigm, plans to use the funds to expand its team and production capabilities in order to create a highly optimized EVM-compatible blockchain with improved TPS. According to Monad Labs, their “devnet” has already achieved a TPS of 10,000. The devnet is an internal environment that serves as the first step towards an open public testnet. This achievement is considered a significant milestone for the project.

Monad Labs describes the testnet as a hyper-optimized upgrade of the Ethereum blockchain. The additional funding will enable the company to hire more developers to support a wide range of DeFi web3 applications on the chain.

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