High-throughput blockchain network Avalanche has had a massive venture capital cash injection which has seen its token price soar to a new all-time high.
In an announcement on Sept 16, Avalanche reported that venture capital giants Polychain and Three Arrows Capital are leading a $230 million investment in its public blockchain ecosystem.
Other VCs contributing to the massive funding round included R/Crypto Fund, Dragonfly, CMS Holdings, Collab+Currency, Lvna Capital, and several industry angel investors.
The Avalanche Foundation stated that it will use the proceeds from the private sale of tokens, which was completed in June, to accelerate the growth of DeFi and support projects running on its blockchain. Emin Gün Sirer, Director at the Avalanche Foundation, said:
“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.”
Another Ethereum killer?
Avalanche launched only a year ago in September 2020. Since then, it has attracted more than 270 projects building on the platform, some of them are big names such as Tether, SushiSwap, Chainlink, Circle, and The Graph.
Chairman at Three Arrows Capital, Kyle Davies, commented that “Avalanche has found a product-market fit for what DeFi users want today, while also building for where the space is moving with custom blockchains on the platform.”
The demand for high-throughput blockchains has been heightened by the painful cost of gas on layer 1 Ethereum. Average transaction fees have been climbing again for the past 5 days and are currently at $26. This is way too much for the average user to pay for a transaction which is why many are switching to faster and cheaper networks such as Avalanche.
The network has gained more momentum from its “Avalanche Rush” liquidity mining incentive which was launched last month. The Avalanche Foundation allocated up to $20 million in AVAX tokens for Aave users and $7 million worth of tokens for Curve users to farm.
AVAX hits new all-time high
The massive investment announcement has pushed its native AVAX token to a new all-time high of $68.34 during the early hours of Sept 17. Prices had retreated to $64.90 at the time of press, down nearly 4% from its opening price.
AVAX is currently up 60% over the past week and 177% over the past month making it one of the crypto market’s best-performing assets at the moment.
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