Drift Protocol Secures $25M in Series B as DeFi Derivatives and Prediction Markets Boom
The Solana-based DeFi protocol plans to double its headcount and expand its product offerings following a $25 million Series B funding round led by Multicoin Capital.
Drift Protocol, a rising star in the Solana DeFi space, has secured a $25 million Series B funding round led by crypto venture firm Multicoin Capital. This significant investment follows Drift's series of strategic moves to capture a larger share of the diverse DeFi derivatives market and will fuel an ambitious expansion of its team.
Drift's recent launch of BET on DRIFT, a prediction market built on Solana ahead of the US elections, has garnered considerable attention. Within just one week of launch, Drift flipped PolyMarket in 24-hour volume on August 28th, 2024, signaling a strong user response and a potential shift in the prediction market landscape.
The platform's rapid growth, with $388 million in total value locked (TVL) and a series of successful product launches, has attracted significant investor interest. While details of the latest funding round remain unclear, it is believed to be a private token sale, given Drift's existing $DRIFT token launched in May 2024.
Multicoin Capital's Managing Partner, Kyle Samani, confirmed the private nature of the funding round in a tweet posted a few days before the official announcement. He expressed strong confidence in Drift's potential: "We have been analyzing DeFi derivatives pretty seriously since 2019-2020, and we believe that Drift Protocol is the best positioned protocol to capture that opportunity. We led multiple private rounds and have been buying on the public market since the token launched in May."
The Drift token $DRIFT has surged by 77% in the past 30 days, currently trading at $0.73 at press time.
Drift's Journey: From Seed to Series B and Beyond
Drift's journey to this point has been marked by steady growth and strategic fundraising. The platform raised $3.8 million in a seed round in 2021, followed by a $23.5 million Series A round in May 2023. This latest funding round brings Drift's total funding to an impressive $52.5 million, positioning it for further expansion and innovation.
Fueling Growth: Doubling the Team
With this fresh injection of capital, Drift is set to embark on an aggressive growth trajectory. The company plans to double its headcount from 25 to 50 within the next year. This expansion will bolster Drift's capabilities across various fronts, including engineering, product development, marketing, and business development.
With fresh capital and a growing user base, Drift is well-positioned to execute its ambitious roadmap. The platform plans to expand its suite of financial services tools, enhance its cross-margin functionality, and further develop its prediction market offerings.