Avalanche received $230 million invested from Polychain and Three Arrows Capital, price reached new ATH
Avalanche, a relatively new blockchain with a focus on speed and low transactions costs, said it completed $230 million from the private sale of AVAX. Polychain and Three Arrows Capital are leading the investment. Following this news, the AVAX price spiked 22%, reaching a new ATH at $65.57.
AVAX/USD 4-hour chart | Source: TradingView
Avalanche price is up 65% for the week
They conducted a private sale for AVAX and raised $230 million. The list of institutional investors that have just poured money includes Polychain Capital, Three Arrows Capital, R/Crypto Fund, Dragonfly, CMS Holdings, Collab+Currency, Lvna Capital, and a group of angel investors and family offices.
? BIG News ?@Polychaincap and Three Arrows Capital led a $230M investment in the #Avalanche ecosystem to support growth of the platform.https://t.co/T141NFEoIG
— Avalanche ? (@avalancheavax) September 16, 2021
The Avalanche Foundation will use the proceeds from the token sale to support and accelerate the rapid growth of DeFi activity on the blockchain, including creating grants for projects, token redemption, and others to support and accelerate the rapid growth of DeFi, enterprise applications, and other use cases on the Avalanche public blockchain.
Like Solana and other newer blockchains, Avalanche wants to solve the scalability issues that older blockchains face. For instance, if you’ve recently tried to buy an NFT on the Ethereum blockchain, you probably paid $50 or $100 in transaction fees, or gas fees.
Another coincidence is that its blockchain competitor, Solana, in June also raised $314 million from top crypto venture firms. Major investors include Andreessen Horowitz, Polychain Capital, CMS Holdings, Coinfund, ParaFi, and others.
Coincidentally, in this private sale, Polychain also participated. And then, SOL also spiked and reached ATH at $213.47. SOL is considered one of the top-performing names this year, increasing in price by a staggering 22 times. Will AVAX be able to achieve the same gain as SOL this time?
Earlier, in mid-August, Avalanche announced a $180 million Avalanche Rush fund to attract more DeFi assets and applications to the network, typically Aave, Curve, and Sushi.
AVAX has outperformed all other top 15 cryptocurrencies in the past week with a 65% gain and is currently the 13th-biggest with a market value of about $13.3 billion. Avalanche launched in September 2020 and counts more than 225 projects building on the platform, including DeFi projects like Tether, SushiSwap, Chainlink, Circle, and The Graph.
Read more:
- Zabu Finance Had Been Exploited On Avalanche For $3.2 Million, But Price Recovered 35%
- Avalanche (AVAX) Is Deemed To Rise 1000x And Be The Next Solana (SOL) – Here’s Why