Reservoir, NFT infrastructure provider for Coinbase and MetaMask, raises $14M

Reservoir, whose NFT technology is used by MetaMask, Magic Eden and Coinbase, closed a $14 million funding round led by Union Square Ventures.

Reservoir, the non-fungible token (NFT) infrastructure provider for Coinbase, MetaMask and Magic Eden, has closed a $14-million funding round to expand its infrastructure to new marketplaces.

Additional investors in the Series A round include Variant, Archetype and Square Peg Capital.

The funding will be used to expand Reservoir’s infrastructure to enable more networks to integrate NFT trading. This includes providing tools for indexing token images and data and interacting with decentralized exchanges and NFT markets. 

“Creating a unified market for NFTs (and tokens at large) requires robust token indexing, aggregating token liquidity across marketplaces and interfacing with decentralized exchanges,” said Maier. “These APIs and developer tools are what teams like Coinbase, MetaMask and Magic Eden use.”

The bursting of the “NFT bubble” and what comes next

However, the market has slumped considerably in recent years, with 2024 seeing the lowest NFT trading volume and sales count since 2020.

Maier attributed the market volatility to the popping of an “NFT bubble” that followed a highly speculative mania phase of the market. 

“At the end of the day, NFTs are simply a type of token, where that token is unique, and we are still extremely excited about how NFTs can revolutionize digital ownership,” said Maier, adding: 

“While some of the mainstream focus in crypto has moved on, there are a wide variety of compelling use cases that continue to impress us — from collectibles to art, to [real-world assets].”