Polychain and Three Arrows headed the $230M Avalanche financing round, forcing the AVAX token to grow more than 22% over the past 24 hours. In parallel, its market capitalization exceeded $14.2 billion.
Over the past year, Avalanche has officially joined the number of so-called "Ethereum killers", reaching ever greater heights, on a par with Solana. Investors seem to have a strong interest in a worthy heir for the second cryptocurrency on the market, so they regularly invest large sums in Avalanche.
Shortly after the news about the $230 million investment in the project appeared, the AVAX token reached a new all-time high at around $67.86. Now its value has corrected to $65.55 on Huobi. However, it does not appear that the coin intends to interrupt the positive momentum.
The last round of Avalanche funding was taken over by two companies Polychain Capital and Three Arrows Capital, joined by CMS Holdings, R/Crypto, Lvna Capital, Dragonfly Capital, and many others. The token sale itself was closed in the summer, but the official announcement from Avalanche about its results came only today.
The funds raised by the Avalanche team will be used to promote the DeFi ecosystem and the rapidly growing list of dApps based on their blockchain. The project assistance plan includes not only grants and investments but also direct technical help from Avalanche representatives. From its start in fall 2020, Avalanche laid a solid basis for the landscape of the entire DeFi industry and presently serves as the foundation for 270 crypto projects. For example, Circle, Chainlink, SushiSwap, and more.
According to data from CoinGecko, since August 1, 2021, AVAX has gained 400% from less than $13 to $67.86 per token on Huobi. At the same time, the activity on the platform has noticeably increased. DefiLlama notes that the amount of blocked funds on the network (TVL) has tripled compared to last month, reaching $2.69 billion.
Of course, there is no question of direct comparison with Ethereum, whose current TVL exceeds $125 billion. However, it is also worth considering that Avalanche is still a newcomer, which may well, if not overtake Ethereum, then at least offer companies operating on the ETH blockchain more bandwidth and more favorable conditions.
Even the giants of the market have to strain when projects such as Solana with $10 billion TVL are gaining momentum in the crypto industry because everyone understands that kings do not rule forever.
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