Avalanche Breaks All-Time High on News of $230M Raise
The investment was made through a private token sale in June this year.
- Avalanche has announced a $230 million token sale co-led by Polychain Capital and Three Arrows Capital.
- Avalanche Foundation said it would use the proceeds from the token sale to accelerate the growth of DeFi.
- The $230 million funding has further boosted the value of AVAX; the token is trading at its all-time high of $66.
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Avalanche has closed a $230 million funding round led by Polychain Capital and Three Arrows Capital.
Leading Crypto Investors Back Avalanche Ecosystem
Avalanche has landed a $230 million investment to build out its ecosystem from some of the digital assets space’s top investors, Avalanche Foundation announced today.
Polychain Capital and Three Arrows Capital led a private token sale conducted in June 2021. Other participants included R/Crypto Fund, Dragonfly Capital, CMS Holdings, Collab+Currency, Lvna Capital, and several angel investors.
Avalanche Foundation said it would use the proceeds from the token sale to accelerate the growth of DeFi, enterprise applications, and other use cases.
The $230 million funding news is the latest booster for Avalanche’s native token AVAX, which has rallied to a new all-time high of $66 since the announcement dropped.
Within the last 24 hours, the token price has shot up more than 24%. It’s surged by around 200% since the Layer 1 blockchain’s Avalanche Rush announcement, which has seen the network integrate Aave and Curve, two staples of Ethereum’s DeFi ecosystem.
Olaf Carlson-Wee, the founder and CEO of Polychain Capital, said that his firm was “pleased to support Avalanche as the platform continues to grow its vibrant community of open source developers.”
Avalanche has gained a lot of attention through its scalable Ethereum Virtual Machine-compatible Layer 1 network, which allows it to support the same DeFi apps Ethereum is known for at a higher speed and lower cost.
Avalanche’s most promising value proposition is low-latency block times compared to Ethereum and other EVM-compatible chains. It can achieve high throughput of 4,500 transactions per second and block times of 1 second while preserving decentralization. Currently, the network has the highest number of validators securing the network for any Proof-of-Stake protocol.
Avalanche has gained momentum since it launched its Avalanche Rush liquidity mining program. In the last month, the likes of Su Zhu of Three Arrows Capital have vocally come out in support of the blockchain and its community. Many other crypto enthusiasts have shared memes about “bridging” onto the network from Ethereum.
To date, over $1 billion worth of crypto assets has been bridged from Ethereum and deployed to various DeFi protocols on Avalanche, including Curve, SushiSwap, Pangolin, and Benqi. According to Avalanche Foundation, over 270 projects are building on the network today.
Disclosure: The author owns less than $100 worth of AVAX and ETH.