Reservoir, an NFT infrastructure provider, has closed a $14 million Series A funding round.

This funding aims to expand its infrastructure and facilitate the integration of more networks into the NFT ecosystem.

Reservoir, a leading NFT infrastructure provider, has secured $14 million in a Series A funding round. The round was spearheaded by Union Square Ventures (USV), with further participation from Variant, Archetype, and Square Peg Capital.

This funding will be utilized to bolster Reservoir's tools for NFT trading, such as solutions for indexing token images and data, and enabling connections to decentralized markets and NFT exchanges. According to Jason Maier, co-founder and COO of Reservoir, while blockchains facilitate digital ownership, the essential tools for trading these assets are not natively available on blockchain networks. Thus, their aim is to simplify and enhance the infrastructure required for platforms like Coinbase and MetaMask to operate effectively within the NFT market.

The NFT market experienced a significant boom between 2020 and 2022, notably in 2021, when it achieved record sales. However, the market faced challenges in the following years, with transaction volumes and NFT sales declining substantially, reaching levels comparable to 2020 by 2024.

According to Maier, this decline can be attributed to the bursting of the “NFT bubble” following a period of speculation. Despite this slowdown, there are indications of a potential recovery, with NFT sales reaching $877 million in December 2024, suggesting that the market still has room for growth.

Furthermore, the acquisition of Tokenproof, a tokenization platform, by Yuga Labs, the creators of the renowned Bored Ape Yacht Club collection, highlights the ongoing importance of NFTs within the crypto ecosystem.