Avalanche, a proof-of-stake and smart-contract enabled cryptocurrency, has received £167 million in funding through a private sale led by Polychain and Three Arrows Capital.
R/Crypto Fund, Dragonfly and CMS Holdings also invested substantially by buying up the company’s native AVAX token.
Avalanche is an ultra-fast and eco-friendly blockchain protocol with a growing ecosystem of decentralised finance (DeFi) products.
Avalanche has experienced monumental growth since its launch in 2020, with the AVAX token now the thirteenth largest cryptocurrency in the world by market cap.
The project seeks to solve the scaling issues faced by older blockchains. While the Ethereum blockchain can process 14 transactions per second Avalanche can process 4,500.
Emin Gün Sirer, director at the Avalanche Foundation and an assistant professor at Cornell University, said, “the network 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,” he added.
The Avalanche foundation stated that the funds coming from the token sale will be used to incentivize and support the growth of DeFi, enterprise applications, and other use cases on top of the Avalanche blockchain.
More specifically, the funds will be invested in giving grants, token purchases, and various forms of investments for projects in the ecosystem.
AVAX jumped by 21% in the 24 hours following the funding announcement, trading at around $65, making it up 1636% this year to date.
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