Solana Wallet Phantom Becomes a $1.2 Billion Unicorn With $109M Series B as DeFi Adoption Surges

Phantom, the Solana-focused crypto wallet that has rapidly become one of the most popular gateways to decentralized finance, has closed a $109 million Series B funding round led by Paradigm, reaching a valuation of $1.2 billion and cementing its status as the latest crypto unicorn.

TL;DR

• Phantom raised $109M in a Series B round led by Paradigm, reaching unicorn status at a $1.2B valuation
• The wallet grew from 40,000 active users to 2.1 million monthly active users in just six months
• Users have collectively staked 112.4 million SOL ($10.4 billion) and swapped $1.37 billion in tokens through the platform
• Phantom launched its iOS app publicly alongside the funding announcement, with an Android version coming soon
• Plans are underway to expand beyond Solana and support EVM-compatible blockchains

The round, announced on January 31, also saw participation from returning investors including Andreessen Horowitz (a16z), Variant, Solana Ventures, and Jump Crypto. The raise comes just six months after Phantom closed a comparatively modest $9 million Series A from a16z, underscoring the explosive growth the wallet has experienced in the second half of 2021.

From 40K to 2.1 Million Users in Six Months

The numbers tell a striking story of adoption. When Phantom closed its Series A, the wallet had roughly 40,000 active users. Today, it boasts 2.1 million monthly active users, with CEO Brandon Millman noting that the company has been consistently onboarding approximately 100,000 new users per week.

That growth has been fueled by the broader Solana ecosystem’s expansion, which has attracted users with faster transaction speeds and significantly lower fees compared to Ethereum. The network’s appeal has been particularly strong in decentralized finance, where users are seeking alternatives to Ethereum’s congestion and high gas costs.

The engagement metrics are equally impressive. Phantom users have collectively staked more than 112.4 million SOL, valued at approximately $10.4 billion at current prices. They have also swapped $1.37 billion in tokens and completed 55.2 million transactions spanning NFTs, DeFi protocols, and decentralized applications.

Mobile Expansion and the Road to Multi-Chain

Alongside the funding announcement, Phantom released its iOS app to the general public, marking a significant step toward broadening its reach beyond desktop browser extensions. An Android version is expected to follow in the coming months. The mobile launch represents a strategic push to onboard a new wave of less technically inclined users into the web3 ecosystem.

Perhaps the most consequential aspect of Phantom’s roadmap is its plan to expand beyond Solana and add support for blockchains compatible with Ethereum’s EVM stack. This move would position Phantom to compete directly with MetaMask, the dominant Ethereum wallet, which has long held the lion’s share of the browser-based wallet market.

Multi-chain compatibility, however, comes with its own set of challenges. Phantom currently has around 20 employees, though the team plans to scale significantly with the new funding, particularly in product development and community support roles.

Why the Timing Matters

The fundraise comes at a particularly turbulent moment for the broader crypto market. Bitcoin is on track for its worst January since the 2018 crypto winter, having dropped more than 18% during the month amid a broader selloff in risk assets driven by expectations of Federal Reserve rate hikes. Solana’s native token SOL has also experienced significant volatility, trading at around $99.74 — well below its November highs.

Despite the market headwinds, Phantom’s ability to attract a major round at unicorn valuation signals that investors remain confident in the long-term potential of DeFi infrastructure and user-facing crypto applications. The logic is straightforward: regardless of short-term price movements, the wallets that successfully capture and retain users during market downturns will be the ones best positioned when conditions improve.

“As the party that’s closest to the end user, we definitely have a responsibility to protect and educate users,” Millman told TechCrunch. “A lot of the work that we’ve spent in the past couple months has been around user safety-related features.”

Why This Matters

Phantom’s meteoric rise from a small Series A to a $1.2 billion valuation in just six months reflects a broader shift in the DeFi landscape. As Ethereum’s high fees continue to push users toward alternative chains, the wallets and infrastructure built on those networks are capturing enormous value. Phantom’s planned expansion to EVM-compatible chains signals that the battle for wallet dominance is far from over — and that the winners will be those who can offer a seamless, multi-chain experience at scale.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making any investment decisions.