An innovative contract-enabled cryptocurrency, Avalanche based in the US is a relatively new blockchain with a focus on speed and low transaction costs. Recently, the company has completed a $230 million from a group of VC investors in a private sale of AVAX tokens.
The funding round was led by Polychain and Three Arrows Capital, with the participation of other companies. Also, R/Crypto Fund, Dragonfly, CMS Holdings, Collab+Currency, Lvna Capital, and a group of angel investors participated in the round.
The Avalanche foundation announced that the funds raised from the token sale, which was held in June will be used to support the growth of DeFi, enterprise applications and other use cases apart from Avalanche blockchain. It will invest the proceeds in providing grants, token purchases and other forms of investments for projects in the ecosystem.
Witnesses massive growth
Avalanche has experienced a massive growth since its launch in 2020. The AVAX token is now the 13th largest cryptocurrency in the world by market cap. The project aims to solve the scaling issues faced by older blockchains. While the Ethereum blockchain can process 14 transactions per second Avalanche can process 4,500. AVAX jumped by 21 percent in the 24 hours following the funding announcement and was trading at around $65, making it up 1636 percent this year to date.