Following the collapse of Terra, a new fund has been established to aid NFT, gaming, and DeFi projects on Solana grow and keep former Terra builders on their feet.
The Solana Foundation and the Solana Ventures have established a $100-million fund to assist South Korean nonfungible token (NFT), blockchain game, and decentralized finance (DeFi) startups in growth.
The fund will also assist with the continued operation of Solana-based projects following the ecosystem’s collapse last month.
The new fund will help Solana become a popular choice for gaming-related blockchain transactions. In November, Solana Ventures launched a similar $100 million gaming fund with crypto exchange FTX and Lightspeed Ventures. The company also has a $150-million fund with game-focused firms Forte and Griffin Gaming Partners.
With the government pledging $187 million to establish its own metaverse ecosystem, South Korea is expected to become a hotspot for NFT and metaverse development this decade.
Within the country, the Korean metaverse will concentrate on developing digital content and digital businesses.
The country’s gaming finance (GameFi) and decentralized finance (DeFi) industries will grow as firms compete for grant money, according to the Solana Foundation.
There is a lot of competition to design the finest platforms as quickly as possible, with several South Korean platforms already providing NFTs or access to DeFi, such as Klaytn’s layer-1 blockchain and Upbit.
Klaytn’s most popular DeFi platform is KLAYswap, which has a total value of $274 million, according to the DefiLlama DeFi ecosystem tracker. The NFT market on Upbit, South Korea’s largest exchange, is its own.
However, in South Korea, it may be tough for domestic game developers to release their blockchain-based games.
Games are not allowed to offer monetary awards, such as bitcoin, under the present legislation. In December, the Korean government demanded that Apple and Google remove play-to-earn games from their Korean online marketplaces.
In recent months, there has been an increase in the number of people using Solana to trade NFTs and engage in DeFi activities. The second biggest cryptocurrency exchange in the world, Magic Eden, is hosted by Solana and is the top NFT marketplace in terms of volume. OpenSea, the second largest decentralized app (DApp) tracker DappRadar reports, has 35,526 daily traders and $7.31 million in daily volume.
Solana may be able to improve the network’s stability by providing funding for ecosystem growth. The network has been having some problems since last year, but this could help improve things.
Solana’s (SOL) price has remained static over the past 24 hours, dropping only 0.5% to $39.05 per coin, according to CoinGecko data.
