The price of AVAX hit a new All-Time High (ATH) as Avalanche Foundation announced that it had raised $230 million from a venture capital company spearheaded by Polychain and Three Arrows Capital. The purpose of the fund is reportedly for supporting the growth of the dynamic Decentralized Finance (DeFi) ecosystem.
Avalanche is one of the fastest smart contracts platforms in the blockchain industry, as measured by time-to-finality and has the most validators securing its activity of any proof-of-stake protocol. Aside from speed, Avalanche also boasts low transaction costs and being eco-friendly.
Since launching in September 2020, Avalanche has become a major influence in the DeFi industry, with its smart contracts platform now providing the infrastructure for over 270 industry projects including SushiSwap, Chainlink, Circle, The Graph and many others.
The $230 million fundraised through the private sale of its native token, AVAX, will be allocated by the foundation across a multitude of use-cases within its blockchain, including “grants, token purchases, and various forms of investments and technology support.”
Emin Gün Sirer, a director at the Avalanche Foundation, shared his thoughts on the platform’s recent advancements and future potential. He stated, “Avalanche has quickly turned promise and potential into real-world impact and value creation for DeFi users and developers. The community of builders rallying around the network is a testament to its competitive edge, and there is still so much potential yet to be tapped at the intersection of institutional and decentralized finance on Avalanche.”
Since the announcement, Avalanche’s native token AVAX surged to a new ATH of $67.86 as investors turned bullish on what Avalanche has in store for the future of DeFi especially with this fundraising done. AVAX is now ranked the 13th most valuable coin by coinmarketcap with a market capitalization of $14.6 billion. The native token has grown by over 50% in the last 7 days.
What you should know
DeFi platform Aave yesterday announced a future community-wide vote on whether the “deployment of smart contracts in Avalanche C-Chain and activation of liquidity mining program” would be beneficial to the collaboration of the two ecosystems.
As of the time of this report, AVAX is up 26% for the day and is currently trading at $66.44, down 3.26% from its ATH that was created in the early hours of the New York trading session.