Avalanche (AVAX) Avalanche (AVAX), the native token of the blockchain named after it, jumped up on an announcement that claims that Ava Labs is seeking to raise more capital. The capital raise planned could be a catalyst to see Ava, the blockchain’s principal developer, becoming one of the most profitable crypto-related companies.
AVAX has risen by nearly 7 percent over the past 12 hours, and it was trading at $81.58. The latest surge saw the token erase most of its losses over the last three days, in which a broader crypto-related downturn had put pressure on prices.
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Why does Avalanche rallies on Bullish development?
A bullish Trend is an upwards trend in the price of stocks in an industry or the overall increase in indices of the broad market that is characterized by high investors confidence. Description: A bullish pattern for a particular period of time suggests a economic recovery.
Avalanche is a well-known blockchain for smart contracts, often referred to by some to be an “Ethereum Killer” because of its claims of addressing several flaws in the overall network.
Highlights: Ava Labs to raise $350 million.
Bloomberg published a story about Avalanche Labs:
Ava Labs is raising $350 million in funding, which puts the company’s value at $5.25 billion. This new investment comes in the same way that AVAX is competing against other intelligent contract chains, such as Ethereum or Solana.
The chain, introduced in September of this year, saw a dramatic increase in its popularity. AVAX is currently the 10th largest cryptocurrency by market capitalization at $21.8 billion.
It was not clear what the preferred method of capital raising was. However, Avalanche has sought out investments from large crypto investors, such as Polychain Capital, Three Arrows, and Andreessen Horowitz.
In September, The Avalanche Foundation raised $230 million through a private auction of AVAX tokens.
Highlights: Avalanche attracts DeFi interest
The Terra community, the Luna Foundation Guard (LFG), has recently added approximately $100 million worth of AVAX to their UST reserves. Although AVAX does have its DeFi protocols, the presence of an even bigger player such as Terra is a good indication for the token.
The LFG purchase had boosted AVAX prices.
Based on DeFi Llama’s report:
Presently, Trader Joe is Avalanche’s largest DeFi exchange, and it has $1.35 billion worth of value locked and is the 26th most valuable protocol.
However, it’s not the only reason to use Avalanche. It supports Ethereum-based applications, and it also permits the development of games with features that have been linked to the rapid growth of blockchain’s popularity.
Want to know more about Avalanche, then visit the Wikipedia Avalanche Blockchain platform official page.
Source: Google News Trend