Walrus Raises $140M for High-Speed Decentralized Storage Protocol

The walrus Foundation has successfully raised $140 million to support the development of Walrus, a high-speed decentralized storage protocol. This protocol is designed to enhance existing blockchain-based storage networks, offering a faster and more cost-effective solution. The funding was secured through a private sale of Walrus’s native cryptocurrency, $WAL, ahead of the network’s official launch on March 27, 2025.

Standard Crypto led the investment round, with participation from Andreessen Horowitz’s crypto fund, Electric Capital, and Franklin Templeton Digital Assets. The sale valued the protocol’s total token supply at $2 billion. Walrus aims to provide a more flexible and efficient alternative to current decentralized storage projects like Filecoin and Arweave, which are primarily used for archival purposes. Unlike these existing protocols, Walrus supports real-time web applications and programmable use cases, making it suitable for a broader range of applications beyond long-term data preservation.

Adam Goldberg, managing director and co-founder of Standard Crypto, highlighted the challenges faced by previous on-chain storage attempts, noting issues with scalability, flexibility, and security. Mysten Labs, the team behind the Sui blockchain and the developers of Walrus, attracted significant investor interest. Mysten CEO Evan Cheng mentioned that the fundraising round closed within three weeks, underscoring the rapid growth and potential of the project. Cheng also emphasized that Walrus improves both speed and cost efficiency, addressing the limitations of existing storage protocols that are either slow or expensive.

During the beta phase, Mysten Labs has already developed a web-hosting service on top of Walrus, demonstrating the protocol’s practical applications. The growing demand for alternatives to centralized cloud services like Amazon Web Services and Google Cloud has driven interest in decentralized storage networks. These networks aim to minimize dependence on centralized systems and protect information from loss or censorship by distributing data across independent nodes. However, many decentralized storage networks still face challenges in balancing scalability, cost, and speed, which Walrus seeks to address.

The increased interest from large investors reflects the pressure to establish infrastructure for a broader set of blockchain-based applications. Sectors such as gaming, artificial intelligence, and decentralized social networks are expected to drive further demand for flexible, high-speed decentralized storage networks. The protocol’s design may shift the creation of decentralized applications (dapps) by enabling swift data exchange and fluid on-chain operations. Its adaptable framework could drive developers to revamp apps for higher efficiency and improved user interactions. However, accelerated data flows might trigger network strain and integration challenges, requiring developers to refine protocols to balance rapid processing with consistent operational security.

The system is built to work alongside current blockchain frameworks by offering a flexible interface for interactive apps. Its integration plan may promote cross-chain links and modular improvements for broader utility. The launch of Walrus is anticipated to bring a new era of dynamic, verifiable, and programmable storage solutions, potentially reshaping the landscape of decentralized applications and blockchain-based services.