Avalanche To Fuel Biggest Upgrade With New Funding, AVAX Reacts

Layer 1 blockchain project Avalanche has secured $250 million through a locked token sale. This means that all the tokens sold have defined vesting or lock-up periods.

In an X post, Avalanche noted that the sales turnout highlights the growing confidence in its blockchain ecosystem ahead of the Avalanche9000 upgrade.

Avalanche9000 Upgrade, What is it?

The Avalanche9000 upgrade launched on testnet last month with over $40 million in retroactive rewards.

This reward was specifically designated for developers building on the network. Notably, the Avalanche9000 upgrade is designed to drive scalable, purpose-built Layer-1 protocols.

According to the project’s update, it could also help reduce blockchain deployment costs by 99.9% and transaction costs by 25 times.

Avalanche is preparing to host the mainnet upgrade by December 16. The goal is to achieve enhanced scalability and streamlined development.

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Avalanche also hopes to equip developers with better tools for building decentralized applications.

Galaxy Digital, Dragonfly, and ParaFi Capital led the latest token sales exercise.

Other participants included SkyBridge, SCB Limited, Hivemind, Big Brain Holdings, Hypersphere, Lvna Capital, Republic Capital, Morgan Creek Digital, FinTech Collective, CMCC Global, Superscrypt, Cadenza, Chorus One, and Tané Labs.

Jason Urban, Galaxy Global Head of Trading, claimed that his firm’s support of Avalanche and the growth and scalability of blockchain protocols is important to the industry’s future. He further added,

“At Galaxy, we are providing Avalanche with the strategic resources and services needed to foster institutional participation and long-term growth, ensuring they can lead the next wave of blockchain adoption with Avalanche9000.”

New $250 Million Funding, How Will it Help?

Speaking to Forbes about the $250 million fund, Avalanche co-founder Emin Gün Sirer stated that the primary goal of the private locked-token sale was to get alignment.

He also claimed it aimed to incentivize the right partners to build with. In 2021, Avalanche also raised $230 million in a similar token sale, but Polychain led this particular round.

Allegedly, a little above 500 L1 chains are already in development.

This cuts across sectors, such as the tokenization of real-world assets. Other Web3 niches include loyalty, gaming, payments, and institutional programs such as DeFi Kingdoms, Dexalot, Off The Grid, and Lamina1.

ParaFi Capital founder Ben Forman is confident in Avalanche’s capacity to become a driving force in the evolution of onchain institutional finance.

AVAX Crypto Price Reaction Amid Bull Run

Amidst these developments, Avalanche’s native token, AVAX, has recorded some positive momentum.

The funding news has triggered the bullish movement of altcoin.

At the time of writing, the AVAX price was $53.79, corresponding to a 13.17% increase in the past 24 hours.

Its market cap has also climbed to $21.86 billion, making the coin the 11th largest cryptocurrency by market capitalization.

AVAX trading volume is up by 68.05%, suggesting that readers are optimistic and confident about the coin’s future.

Based on the daily chart seen on TradingView, the Relative Strength Index (RSI) for the Avalanche price action is about 62.61. This means that the cryptocurrency’s buying pressure is high.

Some analysts believe the coin may eventually reach $200 if it continues this bull movement. However, corrections cannot be ruled out from its impending growth trend.