In a Series A fundraising round, Reservoir, a major participant in token trading infrastructure, has raised $14 million. This investment will support Reservoir’s attempts to extend its infrastructure, improving NFT trading across numerous networks, under the direction of Union Square Ventures, a renowned venture capital firm in New York.
The funds will help Reservoir develop advanced tools for better indexing of token images and data. These improvements will enhance interactions with decentralized exchanges and NFT marketplaces, ensuring a smoother experience for users. Despite the NFT market’s downturn, which has seen a drop in trading volumes and sales since 2020, Reservoir remains positive about the future.
Jason Maier, co-founder and COO of Reservoir, views the current market dip as a “correction after a speculative bubble.” He highlights the ongoing interest in NFTs, particularly in collectibles, art, and real-world asset tokenization, as indicators of their enduring potential.
The funding round shows that the NFT space is expected to grow in the long run. Sales in December reached $877 million, indicating a possible comeback, and the market has already begun to show signs of recovery. The sector’s optimistic outlook is further enhanced by noteworthy industry actions, including as Yuga Labs’ acquisition of Tokenproof.