Ava Labs, the main developer of the Avalanche Blockchain, has reportedly raised $350 million in new funding at a valuation of $5.25 billion. Avalanche is the network behind DeFi altcoin project AVAX. Here are the details…
Investment in Avalanche behind DeFi altcoin project
Avalanche blockchain developer Ava Labs is in the process of raising new funding that will give it a $5.25 billion valuation, according to a Bloomberg report on Thursday. . The Brooklyn, New York-based startup has raised $350 million, according to the report, which cited people familiar with the controversies. A $5.25 billion valuation places Ava Labs in the upper echelons of the most valuable crypto startups in the world.
But it still lags slightly behind Ethereum scaler network Polygon, or Circle, a backer of the USDC stablecoin, which was valued at $20 billion in its last funding round. As we reported as Kriptokoin.com, Circle had $ 9 billion in February. Like many other Blockchains, Avalanche wants to move projects and applications away from Ethereum with the promise of high speeds and low transaction fees. Specifically, Avalanche offers “subnet” functionality through which application-specific Blockchains can be scaled.
Avalanche has raised $250 million to date
Avalanche was launched as an “Ethereum killer” by Ava Labs in September 2020. According to data from DeFi Llama, it has collected over $13 billion in total locked value (TVL) to date, compared to Ethereum’s valuation of over $115 billion. Avalanche is currently the fourth largest blockchain after Ethereum, Terra and BNB Chain.
Ava Labs and related organizations have raised approximately $250 million to date from high-profile investors. Last September, the Avalanche Foundation raised $230 million in a token sale led by Polychain and Three Arrows Capital. It had previously raised $18 million in two rounds. Given the growing adoption of Avalanche, its native token AVAX has also soared in price. According to CoinGecko, the price has increased by about 5 percent in the last 24 hours, reaching around $81.
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