The Avalanche blockchain has been quickly growing and has seen its AVAX token increase over 1,600% year-to-date. The foundation behind the blockchain announced that it has raised $230 million in funding via private sales of its token to investment groups like Polychain and Three Arrows Capital.
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The token sale was completed in June and included other firms like R/Crypto Fund, CMS Holdings, Collab+Currency, Dragonfly and more. Avalanche says it will use the funds to speed up its growth of decentralized finance applications as well as enterprise-level solutions.
Olaf Carlson-Wee, Founder and CEO, Polychain Capital, said that the company is pleased to support Avalanche as it continues to grow.
“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.”
The president of Ava Labs, John Wu, said that the blockchain's ecosystem has relied on organic growth so far, but with the injection of $230 million, they plan to boost development.
“We have been relying on the technology having great organic growth, and now it’s time to supercharge that growth,” said Wu. “All the pieces are there.”
Avalanche launched in September of last year and has already ranked 13 by market capitalization among all cryptocurrencies, according to Coinmarketcap. In just the last month the AVAX coin has jumped nearly 65%.
The director of the Avalanche Foundation, Emin Gün Sirer, said that Avalanche has quickly made a real-world impact for DeFi users and that the development activity is a sign of the chain's competitive edge.
“Avalanche has quickly turned promise and potential into real-world impact and value creation for DeFi users and developers,” said Gün Sirer. “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.”