- Polychain Capital and Three Arrows Capital are co-leading a $230 million token sale for Avalanche.
- The proceeds from the token sale will be used to accelerate the growth of DeFi, according to the Avalanche Foundation.
- The $230 million funding has increased the value of AVAX, which is now trading at an all-time high of $66.
Polychain Capital and Three Arrows Capital led a $230 million funding round for Avalanche.
Avalanche Ecosystem is backed by leading cryptocurrency investors.
Avalanche Foundation announced today that it has received a $230 million investment to expand its ecosystem from some of the top investors in the digital assets space.
In June 2021, Polychain Capital and Three Arrows Capital led a private token sale. R/Crypto Fund, Dragonfly Capital, CMS Holdings, Collab+Currency, Lvna Capital, and several angel investors were also present.
The proceeds from the token sale will be used to accelerate the growth of DeFi, enterprise applications, and other use cases, according to the Avalanche Foundation.
The $230 million funding announcement is the latest boost for Avalanche’s native token AVAX, which has risen to a new all-time high of $66 since the announcement.
The token price has increased by more than 24 percent in the last 24 hours. It has increased by around 200 percent since the Layer 1 blockchain announced Avalanche Rush, which saw the network integrate Aave and Curve, two pillars of Ethereum’s DeFi ecosystem.
Polychain Capital’s founder and CEO, Olaf Carlson-Wee, stated that his firm is “pleased to support Avalanche as the platform continues to grow its vibrant community of open source developers.”
Avalanche has received a lot of attention for its scalable Ethereum Virtual Machine-compatible Layer 1 network, which allows it to support the same DeFi apps that Ethereum is known for at a faster and lower cost.
The most promising value proposition of Avalanche is its low-latency block times when compared to Ethereum and other EVM-compatible chains. It can maintain decentralization while achieving high throughput of 4,500 transactions per second and block times of 1 second. Currently, the network has the most validators securing it for any Proof-of-Stake protocol.
Since launching its Avalanche Rush liquidity mining program, Avalanche has gained traction. Su Zhu of Three Arrows Capital, for example, has recently come out in support of the blockchain and its community. Many other cryptocurrency enthusiasts have shared memes about Ethereum “bridging” onto the network.
To date, over $1 billion in crypto assets have been bridged from Ethereum and deployed on Avalanche to various DeFi protocols such as Curve, SushiSwap, Pangolin, and Benqi. According to the Avalanche Foundation, over 270 projects are currently being built on the network.