Avalanche Plans to Accelerate DeFi Growth after $230M Private Token Sale

The Avalanche Foundation was launched in September 2020. The foundation has been actively involved in the DeFi sector. The foundation supports smart contracts that are now being used by more than 270 projects in the sector, among them SushiSwap, Circle, Chainlink and The Graph.

Funds to Boost Use Cases for the Blockchain

The $230 million capital raised through the private sale of the native AAX token will boost use cases for the blockchain. Some of the applications that will be developed for the blockchain include offering “grants, token purchases, and various forms of investments and technology support.”

Speaking on the future of the blockchain, the director of Avalanche Foundation, Emin Gun Sirer, stated that,”Avalanche 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.”

The AVAX token sale was also supported by other firms such as CMS Holdings, Collab+Currency, Dragonfly, R/Crypto Fund and others. The Founder and CEO of Polychain Capital, Olaf Carlson-Wee, stated that it was pleased for the support it had extended towards Avalanche, which will help the network to continue growing.

“We are pleased to support Avalanche as the platform continues to grow its vibrant community of open source developers. We look forward to seeing the next generation of applications launching on the platform,”

Carlson-Wee stated.
During the announcement for the token sale, the president of Ava Labs, John Wu, stated that the blockchain had mainly relied on organic growth. However, the new funding of $230 million will be used to boost development for the blockchain.

The Avalanche Foundation has been enjoying increased adoption. Leading DeFi platform, Aave recently announced that it was launching a community-wide voting process that will determine whether or not to launch smart contracts on the Avalanche C-Chain and develop liquidity mining programs. The partnership between Aave and Avalanche will be mutually beneficial to both DeFi platforms.

AVAX Surges to New Highs

Developments on the Avalanche network have boosted the value of the network’s native token, AVAX. Data from Coingecko shows that the coin has reached an all-time high of $63.34. Its market cap has also shot to $14 billion, and it currently ranks as the 12th largest cryptocurrency.

In the past week, the coin’s value has skyrocketed by around 50%, while its monthly gains come in at 170%. While these gains could be attributed to the growth of the DeFi network, they could also be attributed to the recent rebound across the broader market. In the top 100 list, AVAX is among the few coins with an over 50% weekly gain.

The Avalanche network was launched in September 2020. The current growth and ranking for the coin show that it has exemplarily performed over the past year to become a leading altcoin, despite being new in the crypto space.

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