⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

Avalanche (AVAX) Raises $230 Million in Funding: What's Next?

Avalanche (AVAX) Raises $230 Million in Funding: What’s Next?

Posted Friday, September 17, 2021 by
Aiswarya Gopan • 2 min read

Avalanche (AVAX) appears to be undergoing somewhat pf a price correction in early trading on Friday, with its price sliding lower despite the announcement of a recently concluded successful round of fundraising via private sale of tokens. At the time of writing, AVAX/USD is trading at around $64.66.

The Avalanche Foundation announced on Thursday that it had managed to raise $230 million via a private sale of AVAX tokens, which received participation from several leading crypto funds, including Polychain, Three Arrows Capital, R/Crypto Fund, Dragonfly, CMS Holdings and Lvna Capital. The funds raised will bolster the development of the ecosystem, including supporting DeFi initiatives on the network as well as enterprise applications via grants, token purchases and other investments.

One of the most exciting blockchains in the market at present, Avalanche has been making the headlines in recent weeks ever since the announcement of its $180 million liquidity mining incentive program Avalanche Rush, which has already received interest from numerous leading projects in this space. One of the most recent entrants into the program is the blockchain’s native DEX, Pangolin, which will gain access to $2 million in AVAX rewards for a single-sided pool of PNG.

Avalanche Making Big Moves in DeFi Market

Avalanche is offering an exciting platform for dApps, trying to pull developers away from market leader Ethereum. The blockchain promises higher efficiencies and lower operating costs for running decentralized applications as well as support for smart contracts, a key requirement for DeFi projects. In addition to improved features, the blockchain’s smart contract chain also executes EVM contracts, making it easy for developers to port their projects from Ethereum’s blockchain into Avalanche.

Statistics from DeFiLlama reveal how the TVL in the ecosystem has soared from around $260 million in mid-August to nearly $2.8 billion till date – a testament to the success of the incentive program. Lending and borrowing platform BENQI provides the lion’s share of the TVL on the Avalanche network, accounting for around $1.28 billion and receiving $3 million worth of incentives from the Rush program. The second most popular project Trader Joe is also well funded, having raised $5 million in a recently concluded private token sale.

Key Levels to Watch

Technical analysis of the 4-hour price chart of AVAX/USD reveals a strong bullish bias among moving averages and the MACD indicator. Although, the momentum indicator suggests some interest among sellers as well.

Avalanche’s price looks set to test the pivot point at $72.34 on the back of increased buying interest. A break past this level will confirm the bullish bias. Once this is achieved, keep an eye out on the immediate resistance level at $85.52.

 

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments