Ava Labs, the lead developer of the Avalanche blockchain is raising $350 million, putting its valuation at $5.25 billion.
As Bloomberg reports, Ava Labs is en route to getting a new $350 million cash injection. The news outlet cited "people familiar with the discussions."
Ava Labs completed its first $6 million seed raise in February 2019, which was led by crypto VC firms Andreessen Horowitz and Polychain. The blockchain then went on to close a $230 million token sale last September, with the money going to developing Avalanche's DeFi and NFT ecosystems. The Avalanche Foundation behind the blockchain also launched a $200 million incentive fund in winter 2021 to incentivize further development on its blockchain.
Led by Emin Gün Sirer, a high-profile computer scientist and experienced blockchain expert, Avalanche rocketed to popularity in 2021. Its Avalanche C-Chain, an EVM-compatible blockchain that hosts most of the ecosystem's transactions, Avalanche rose to popularity, thanks to comparatively lower gas fees than other chains like Ethereum.
As a result, the AVAX token saw a stellar rise from around $3 at the start of 2021 to all-time highs over $120. Currently, AVAX is trading at around $78, giving it a market capitalization of $21 billion.
The Avalanche ecosystem has grown in sync with the network's valuation, with Avalanche ranking fourth in terms of TVL, according to DeFi Llama, an analytics firm. Its current total value locked stands at $10.44 billion, only behind Ethereum, Terra, and BNB Chain.
By closing a new funding round, Ava Labs, the developer behind Avalanche, aims to go toe-to-toe with Ethereum, which is scheduled to switch to proof-of-stake as part of its "Merge" later this year.
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