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0 CommentsAva Labs, the lead developer of Avalanche (AVAX), is raising a new round of funding for $350 million at a market valuation of $5.25 billion, Bloomberg reported. The raise comes as the total value locked (TVL) on the Avalanche blockchain remains steady at around $14.6 billion.
Bloomberg reported the new fundraising on Thursday, citing people familiar with the matter, although only one source gave the valuation.
According to data from DeFi Llama, the TVL on AVAX currently sits at $14.6 billion. Decentralized finance (DeFi) borrowing and lending protocol Aave accounts for 33.72% of the market share on the blockchain.
AVAX has become one of the most popular blockchains, surpassing a market cap of $21.3 billion. Since the launch of its mainnet in September 2020, the blockchain has grown to an ecosystem of approximately 450 individual projects, removed $118 million worth of AVAX from circulation through token burning, and attracted more than 1.5 million community members.
The Avalanche blockchain was launched in September 2020 by Ava Labs as an “Ethereum killer.” Avalanche is currently the fourth-largest blockchain after Ethereum, Terra, and BNB Chain.
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.
The Avalanche Foundation also revealed an incentive program last month that would put up to four million AVAX tokens — currently worth about $312 million — toward a program called Avalanche Multiverse. The initiative aims to grow its “subnet” functionality, which helps develop application-specific blockchains on Avalanche.
Given Avalanche’s growing adoption, its native token AVAX has also shot up in price. The price has climbed about 5% over the past 24 hours to reach nearly $81, according to CoinGecko. The token’s fully diluted valuation currently stands at over $58 billion.
