OKX Ventures Investment Quarterly Report: Strategic Multi-Field Expansion Driving Industry Growth
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OKX Ventures Investment Quarterly Report: Strategic Multi-Field Expansion Driving Industry Growth
In the first quarter of 2024, OKX Ventures invested across multiple sectors including infrastructure, Bitcoin ecosystem, AI+DePIN, GameFi, DeFi, and SocialFi, with infrastructure projects accounting for 60% of the total number of investments.
Navigating Web3 tides with focused insightsWith the milestone approval of Bitcoin spot ETFs by the U.S. SEC in January 2024, the crypto industry has gradually emerged from its winter season and entered a new wave of enthusiasm. We have seen the total market capitalization of crypto reach $2.6 trillion in the first quarter of 2024, with stablecoin supply surpassing $150 billion, and Bitcoin’s market cap briefly exceeding that of silver. New narratives such as restaking, the convergence of Web3 and AI, and Bitcoin programmability have gained strong momentum, further driving innovation and growth across the crypto market.
Capital markets are steadily recovering, with total funding exceeding $1.8 billion this quarter—an increase of 50% compared to the previous quarter. During this period, OKX Ventures continued to deepen its involvement, actively investing in high-potential, innovative projects and teams within the crypto space. By providing comprehensive support and empowerment to founders, OKX Ventures is contributing meaningfully to the advancement of the crypto ecosystem.
Key Investments This Quarter
In Q1 2024, OKX Ventures invested across multiple sectors including infrastructure, Bitcoin ecosystem, AI+DePIN, GameFi, DeFi, and SocialFi. Infrastructure projects accounted for 60% of total investments. We believe robust infrastructure remains the cornerstone driving industry-wide progress. Strong foundational layers significantly enhance efficiency and security, laying a solid groundwork for rapid sector development.
1. Infrastructure
Infrastructure is fundamental to industry growth and includes core components such as L1/L2 blockchains, developer platforms, and wallets. These foundational products determine the pace at which upper-layer applications can develop, making blockchain infrastructure a primary focus for crypto investment firms. Recently, with the explosive growth of the Bitcoin ecosystem and Ethereum's Dencun upgrade, OKX Ventures has significantly increased its commitment to advancing infrastructure innovation.
• AltLayer is a highly scalable, application-specific execution layer system built on Optimistic Rollups. It connects with various Layer 1 and Layer 2 networks—including Ethereum, Solana, Polkadot, Cosmos, Arbitrum, and Optimism—to extend their capabilities. To better serve developers, AltLayer introduced Rollups-as-a-Service (RaaS), a versatile, no-code platform for creating custom rollups. Additionally, it pioneered the concept of "instant rollups"—a highly optimized rollup technology enabling dApp developers to rapidly deploy dedicated rollups secured by Layer 1, with seamless settlement when needed.
• Cysic is a zero-knowledge (ZK) hardware company focused on delivering efficient hardware acceleration solutions for ZK proof protocols, aiming to reduce both the time and energy required to generate ZK proofs. The team has developed low-level FPGA and GPU code libraries for critical computations such as multi-scalar multiplication (MSM), number theoretic transform (NTT), and Merkle hash trees—core components in ZK protocols—and is also developing ASIC-based solutions. Running these computations on CPUs is extremely power-intensive and slow, which is why Cysic focuses on accelerating them via FPGA, GPU, and ASIC technologies.
• DEXTools is a leading global DeFi portfolio and cryptocurrency price tracking application. For crypto enthusiasts and traders, DEXTools provides real-time updates on token prices, price alerts, whale movements, blockchain statistics, and DeFi market trends. With an average of 20 million monthly users, DEXTools serves as a vital hub connecting users to the DeFi ecosystem.
• Eclipse is an Ethereum Layer 2 solution powered by the Solana Virtual Machine (SVM), designed to improve blockchain scalability and efficiency. It integrates Ethereum’s secure settlement layer with SVM’s high-performance execution, Celestia’s data availability, and RISC Zero’s zero-knowledge proofs, aiming to achieve high throughput without compromising security.
• Lumoz is a decentralized ZK-Rollup-as-a-Service (ZK-RaaS) network and a PoW network supporting ZKP mining. It combines PoS and PoW mechanisms, aiming to simplify the use of ZK-Rollups and promote widespread adoption, thereby enabling large-scale deployment of zkEVM-based app chains. Developers can deploy their ZK-Rollups (zkEVMs) across multiple chains using Lumoz. For miners, Lumoz operates as a multi-chain PoW protocol, allowing mining across public chains while generating zero-knowledge proofs for ZK-Rollups.
• Taiko is a decentralized ZK-EVM and general-purpose ZK-Rollup designed to allow developers and users of Ethereum L1 dApps to seamlessly migrate to Taiko without any modifications. It enables easier deployment of dApps on L2 while inheriting Ethereum’s security and achieving lower transaction fees than L1. Taiko consists of three components: a zkEVM for proof generation, an L2 rollup node for management, and the Taiko Protocol for rollup verification.
• ZeroGravity (0G) is the first data availability system with a built-in universal storage layer, offering exceptional scalability and decentralization. It achieves scalability by separating the data availability workflow into two channels: data publishing and data storage. Its product suite includes the data availability layer (0G DA) and the data storage layer (0G Storage).
• zkMe is a zk Identity Oracle that provides anonymous user verification on-chain to enhance privacy and security. zkMe verifies user credentials without revealing any personal information. When a user (credential holder) creates a DID using zkMe, they receive a unique Soulbound Token (SBT) cryptographically bound to their public key, serving as verifiable identity. Using ZKPs, users can prove their identity without disclosing sensitive data.
As one of the most critical segments in crypto infrastructure, public blockchains have drawn significant investment from OKX Ventures, including prominent projects like AltLayer and Taiko. The evolution of the data availability (DA) layer has enabled support for projects such as ZeroGravity. In other infrastructure areas—such as top-tier crypto price tracking apps like DEXTools—we have also established close collaborations.
2. Bitcoin Ecosystem
The Bitcoin ecosystem can be considered the starting point of this bull cycle. From late 2023 to early 2024, numerous protocols, infrastructure components, token standards, cross-chain bridges, rollups, and other innovative solutions have emerged, fueling a vibrant revival of the Bitcoin ecosystem. OKX Ventures has been actively involved, making notable progress not only through funding but also via strategic partnerships and resource integration.
• Babylon is a Bitcoin staking protocol that allows Bitcoin holders to stake their idle BTC to enhance the security of Proof-of-Stake (PoS) chains and earn yield in return. As a PoS zone within the Cosmos ecosystem, Babylon leverages Extractable One-Time Signatures (EOTS) to enable native Bitcoin staking on PoS chains without requiring cross-chain transfers or forks. It uses Bitcoin’s PoW as a timestamp and data availability layer, delivering native BTC-level security.
• B² Network is a Bitcoin Layer 2 network built with ZK-Rollup technology and compatible with the EVM, enabling seamless deployment of dApps from the EVM ecosystem. B² anchors the data Merkle tree root hash and ZK proofs onto the Bitcoin network via Tapscript, placing both process and outcome on-chain for enhanced authenticity and verifiability—making it a more robust BTC Layer 2 solution.
• Merlin Chain, developed by Bitmap Tech, is a Bitcoin Layer 2 based on the BTC network and utilizing ZK-Rollup. It compresses transactions using ZK technology and uploads the compressed data along with ZK proofs to Bitcoin L1 via a decentralized Oracle network using Taproot, ensuring transparency and security across the network.
• UniSat Wallet is a leading BTC and inscriptions wallet, supporting minting, trading, and other services for BTC assets like BRC20. As one of the key indexing service providers, UniSat delivers essential infrastructure for BRC20 and similar assets. The team continues to deepen its engagement in the BTC ecosystem—for example, recently proposing enhanced features for self-minting and burning BRC20 tokens to support stablecoin issuance on BRC20, and planning to launch Fractal, a Bitcoin scaling solution.
• bitSmiley is the first native stablecoin project in the BTC ecosystem and part of the Fintegra framework. Its core product, BitUSD, is an over-collateralized stablecoin backed by BTC. Users lock BTC in the bitSmiley DAO to mint BitUSD. Unlike MakerDAO, bitSmiley uses future platform revenue for debt auctions and prioritizes repayment to creditors. Additionally, BitUSD adopts a new inscription format called bitRC20, compatible with BRC-20.
• Bounce Finance is a multi-chain decentralized auction protocol focused on “Auction as a Service,” offering diverse auction products including token and NFT auctions, real-world collectibles, ad space auctions, SDKs, and plugins. It also offers Private Launchpad—a blockchain-based solution designed to streamline IDO processes for new projects. Currently, Bounce Finance is focusing on the BTC ecosystem, providing incubation and auction support.
• DLC.Link offers a suite of applications powered by Discreet Log Contracts (DLCs), enabling developers to easily integrate native Bitcoin functionality. The platform locks Bitcoin in on-chain custody, making it usable by Ethereum and other smart contract blockchains. This “trustless bridge” unlocks use cases such as lending, trading, and derivatives. Moreover, dlcBTC’s non-custodial wrapping approach allows users to retain control of their Bitcoin, eliminating risks associated with third-party custodianship such as mismanagement or theft.
It is evident that OKX Ventures has made broad investments in the Bitcoin ecosystem over recent months—from technical infrastructure players like Bitmap to DeFi protocols such as Bounce Finance and inscription wallets like UniSat. Through comprehensive ecosystem positioning, we are providing strong support not only to the Bitcoin ecosystem but to the broader crypto industry. We are also actively fostering partnerships—such as with Babylon—to encourage wider participation and accelerate industry growth.
3. GameFi
In the second half of 2023, GameFi began regaining momentum alongside broader market trends. Cross-chain games, card games, and Web3 gaming marketplaces and infrastructure have attracted significant attention from investors. OKX Ventures had already positioned itself early in this space, making GameFi one of our key investment priorities.
• Carv.io is a Web3 identity company and gaming aggregation platform that has developed a solution combining Web2 and Web3 data to create unique Web3 IDs for users. Based on this foundation, Carv has built a suite of on-chain gaming data infrastructure, aiming to empower players to own their gaming identities and unlock data value through data sharing. Key products include CARV Protocol—a foundational data solution—and CARV Play, its first DApp on the protocol, offering game distribution, gaming activities, and on-chain event functionalities.
• Mocaverse Platform is Animoca Brands’ decentralized app store integrating over 450 of its portfolio companies in Web3 gaming and entertainment. Users can register a Moca ID, serving as their Web3 login (similar to an Apple ID), enabling interaction with DApps on the platform.
• Lumiterra is a multiplayer open-world survival game where players freely develop talents in combat, farming, or gathering. Moving beyond traditional class systems, players can craft unique characters based on personal interests. Additionally, Lumiterra’s Sodium wallet leverages ERC-4337, ZK, and MPC technologies to provide seamless login and highly secure asset management.
• BLOCKLORDS is a AAA multiplayer strategy game (MMO) launched by MetaKing Studios on a multi-chain network. Players assume roles in a medieval universe, managing farms, recruiting squads, gathering resources, assigning heroes, and upgrading buildings—crafting their own epic journey.
• L3E7 is a fully 3D, location-based service (LBS) game. Using advanced map rendering technology, it immerses players in a 3D metaverse world. L3E7’s metaverse is built upon real-world cities, allowing players to experience realistic environments enhanced with cyberpunk aesthetics.
OKX Ventures supports the GameFi sector holistically—from foundational solutions like Carv’s identity system to immersive 3D titles like L3E7—backing every stage from infrastructure to application. We are also expanding strategic collaborations, such as with Mocaverse, hosting events to drive user engagement and foster vibrant growth in the GameFi space. Looking ahead, the integration between gaming and DeFi projects will continue to mature, creating more engaging experiences and sustainable business models.
4. DeFi
DeFi represents a major innovation in crypto, leveraging smart contracts to deliver financial services in a decentralized manner to a global user base. Since the DeFi Summer, the sector has continuously evolved, introducing new use cases for Web3 users. Notably, the rise of liquid staking following Ethereum’s transition to PoS has offered users yield-generating opportunities with improved capital efficiency. This trend has further evolved into restaking—where users earn rewards while enhancing network security—emerging as two of the most prominent directions in DeFi and fueling continuous innovation and ecosystem expansion.
• Navi is one of the highest TVL DeFi protocols in the SUI ecosystem, currently holding around $150 million in total value locked (TVL). Navi offers lending services for long-tail on-chain assets and collaborates with multiple protocols such as HeroSwap, Ondo Finance, and Cetus to expand DeFi use cases. By acquiring the LSD protocol Volo, Navi now offers fully decentralized liquid staking and is building a one-stop DeFi platform.
• Ether.fi offers a fully decentralized liquid staking solution. Since early 2024, staked assets on the platform have grown rapidly, surpassing $2.9 billion in total value. Ether.fi allows stakers to maintain control of their private keys while staking. ETH staked on Ether.fi is automatically enrolled in EigenLayer for restaking, enabling users to earn multiple rewards—from staking, restaking, and platform incentives—while maintaining high decentralization and accelerating protocol growth.
• Renzo is another leading project in the liquid staking space. In addition to enabling users to stake native ETH for liquid staking and restaking rewards, Renzo also supports restaking with a variety of LSD tokens. It currently holds over $1.25 billion in staked assets.
OKX Ventures closely monitors innovation and high-potential projects in DeFi, believing in the transformative power of emerging narratives to invigorate the sector and help projects deliver superior, comprehensive products and services to Web3 users.
5. AI
Amid the explosive growth of the AI sector, the crypto industry is actively exploring synergies with AI. Both Web3 and AI are evolving rapidly, uncovering new points of convergence. OKX Ventures is focused on identifying teams and projects that bring innovation, promising use cases, and opportunities to the crypto space through this intersection.
• io.net is a decentralized GPU network built on Solana that aggregates idle GPU resources globally to form a distributed computing network, providing cost-effective and high-performance computing power for artificial intelligence (AI) and machine learning (ML). With a simple UI and integrated platform tools, data management systems, and architecture, io.net aims to deliver a high-performance, well-equipped infrastructure platform.
• Myshell focuses on building an interactive AI bot creation platform. Users can input information to generate personalized AI companions with distinct personalities, interaction styles, and voice templates. Beyond chat, these AIs can assist with translation, text generation, and other practical applications.
• 0xScope aims to build an open data layer for Web3 analytics, offering a suite of tools and services to help users understand and leverage Web3 data. Through a clear, intuitive interface, users can generate analytical reports for the Web3 industry—similar to ChatGPT—or conduct comprehensive on-chain behavioral analysis for specific addresses.
• FLock is a decentralized AI co-creation platform that incentivizes users to contribute computing power, AI models, and private data, fostering community-driven AI model development. By enabling collaboration among participants, FLock promotes innovation in the AI space.
• Meson Network aims to build a decentralized bandwidth network using user-friendly nodes. Through an incentive model, it aggregates bandwidth contributed by users worldwide, reallocates it efficiently, and connects supply and demand to create a sustainable economic loop. Meson Network currently hosts over 250,000 nodes globally, meeting bandwidth demands across regions.
Web3 and AI offer vast potential for mutual enhancement. From AI-powered Web3 infrastructure to AI-enhanced Web3 applications, we believe talented teams can drive deeper integration. OKX Ventures is confident that as both fields continue to evolve and converge, their synergy will strengthen, unlocking new innovations and accelerating progress across both ecosystems.
Conclusion:
OKX Ventures believes that with upcoming breakthroughs in the Bitcoin ecosystem, accelerated growth of Layer 2 solutions, high-quality games transitioning from testing to full release, and continuous micro-innovations in DeFi supported by advancing infrastructure, 2024 will be an exceptionally exciting year. Meanwhile, OKX Ventures looks forward to deepening collaborations with outstanding projects, providing comprehensive support, delivering superior services to users, and contributing to the ongoing development of the industry.
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