-
Hemi Labs Raises $15M to Expand Bitcoin Programmability
Hemi Labs, the Bitcoin programmability network founded by Jeff Garzik, has raised $15 million in funding to accelerate development and expand its ecosystem. The round included YZi Labs (formerly Binance Labs), Republic Digital, HyperChain Capital, Breyer Capital, Big Brain Holdings, Crypto.com, and others, according to an emailed announcement on Tuesday.
The company said the funds will support applications for borrowing, lending, and trading on Bitcoin while further developing its Hemi Virtual Machine (hVM), a layer that embeds a Bitcoin node inside an Ethereum VM—a decentralized system that can execute smart contracts and process transactions.
“Bitcoin doesn’t need to be reinvented; it just needs the right tools around it,” said Garzik, one of Bitcoin’s earliest developers. “Hemi provides DeFi protocols with a familiar way to build on Bitcoin, without requiring new skills, compromising on security, or sacrificing decentralization.”
Hemi now counts more than 100,000 verified users and 400,000 community members. Its ecosystem of 70-plus partners includes Sushi, LayerZero, MetaMask, and Redstone. Total value locked has climbed to $1.2 billion. The raise follows Hemi’s mainnet debut in March, which launched with $440 million already committed.
Hemi’s growth reflects a broader wave of Bitcoin DeFi projects seeking to mobilize BTC’s $2.3 trillion market cap. Competitors like Lombard, with its liquid staking token LBTC, and BOB, a hybrid chain combining Bitcoin and Ethereum, are building infrastructure to transform Bitcoin from a passive store of value into an active component of decentralized finance.
The Growth Leg is Important Too
Whereas Bitcoin's growth is derived from people agreeing that it's valuable and scarce, Ethereum's growth depends on it remaining a platform for smart contracts and programmable finance. Smart contracts are programs that live on the blockchain and power decentralized finance (DeFi), stablecoins, tokenized funds, and more. As a result, Ethereum remains the largest venue for DeFi by total value locked (TVL), a useful proxy for on-chain economic activity.
Operating smart contracts or decentralized applications (dApps) requires holding Ethereum's native token, Ether, to pay for gas fees, as well as any fees associated with the particular program being used. That creates a structural reason for investors, users, and developers to buy and hold it. It's also possible to stake Ether to gain a yield.
Ethereum's growth potential is large because it's a platform for an entire ecosystem, which can experience growth and drive demand for the native token or attract capital inflows to the chain. Ether has distinct supply mechanics, which differ from Bitcoin's. Its supply can shrink when network activity burns more fees than new issuance creates.
Its risks also differ from Bitcoin's. Gas fees can spike during peak demand, and the ecosystem's breadth means having a large surface area for hacks, scams, regulatory problems, buggy applications, and failed projects.
The Practical Approach
For new investors, there's an easy way to apportion your portfolio in these two assets. Treat Bitcoin as the lower-risk core, and Ethereum as the higher-growth complement. A simple starter mix is 70% Bitcoin and 30% Ethereum, rebalanced annually if desired. There is no rush to accumulate either of these assets because they will both be around for many years to come.
The most important thing is to invest consistently and hold through volatility and downturns. Once you've mastered both, you will be well ahead of most.
This article has been published on fool.com via Yahoo News.
