NFT infrastructure provider Reservoir, which partners with Coinbase, MetaMask, and Magic Eden, has raised $14 million in a Series A funding round. According to company representatives, the funds will be used to expand the platform and integrate NFT trading with new marketplaces.
New Investment in NFT Infrastructure
The round was led by venture firm Union Square Ventures (USV), known for early investments in Polygon, Dune Analytics, Matter Labs, Arweave, Dapper Labs, and Algorand. Other investors include Variant, Archetype and Square Peg Capital.
Reservoir Co-founder and COO Jason Maier noted that despite the capabilities of blockchains to support digital ownership, there are no built-in tools for token trading directly on the chains.
"Creating a unified market for NFTs and tokens requires powerful indexing, liquidity aggregation, and integration with decentralized exchanges," Maier explained.
He added that Reservoir provides APIs and tools for developers using Coinbase, MetaMask, and Magic Eden.
NFT Market Decline
In 2021, NFTs became a key topic in the cryptocurrency market, with sales reaching a record $57 billion by 2022. However, in recent years, the industry has faced a decline in interest. In 2024, NFT trading volumes hit their lowest levels since 2020.
Maier attributes this to the burst of the "NFT bubble" and the end of speculative hype. Nevertheless, he believes NFTs still have significant potential.
"Ultimately, NFTs are just a type of token, but we are confident they can transform the realm of digital ownership," he emphasized.
Signs of market recovery are already visible: in December 2024, NFT sales volumes reached $877 million.
Sotheby’s Returns to Cryptocurrency
Amid the decline in interest in NFTs, major auction houses have started exploring alternative ways to attract buyers. Sotheby’s announced its first auctions in Saudi Arabia, where Bitcoin (BTC) and Ethereum (ETH) will be accepted as payment.
According to Tuo Luo Finance, this move is part of Sotheby’s strategy to adapt to market changes. The auction house is targeting buyers from regions where digital assets and cryptocurrencies remain popular.
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