Walrus Foundation Raises $140 Million for Decentralized Storage Networks
The Walrus Foundation has raised $140 million to support the development of Walrus, a high-speed decentralized storage protocol designed to improve on existing blockchain-based storage networks, the company announced on March 20, 2025.
The funding was secured through a private sale of Walrus’s native crypto, $WAL, ahead of the network’s official launch.
Walrus Sets Goal for Faster, Cheaper Onchain File Storage
Standard Crypto led the round, joined by 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 seeks to offer a faster and more flexible alternative to existing decentralized storage projects like Filecoin and Arweave, which primarily serve archival needs. The decentralized storage network supports real-time web applications and programmable use cases, distinguishing it from protocols focused solely on long-term data preservation.
“Prior onchain storage attempts have struggled with scalability, flexibility, and security,” said Adam Goldberg, managing director and co-founder of Standard Crypto.
Developed by Mysten Labs—the team behind the Sui blockchain—Walrus attracted investor interest quickly, with Mysten CEO Evan Cheng noting the raise closed within three weeks. According to Cheng, Walrus improves both speed and cost efficiency. “Either they are basically very, very slow,” he said, referring to existing storage protocols. “Or they are very, very expensive.”
Mysten has already built a web-hosting service on top of Walrus during the protocol’s beta phase. The network and its token are scheduled to launch on March 27, 2025.
Decentralized Storage Networks Attract Interest as Cloud Alternatives Expand
Growing demand for alternatives to centralized cloud services like Amazon Web Services and Google Cloud has driven interest in decentralized storage networks. These networks emphasize minimizing dependence on centralized systems and safeguarding information from loss or censorship by spreading data across independent nodes.
However, many decentralized storage networks continue to face challenges balancing scalability, cost, and speed. Wider adoption of dynamic web services is hindered by the fact that many current protocols prioritize secure long-term storage but struggle with real-time lookup or application-level throughput.
Increased interest from large investors reflects 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.
