Polychain and Three Arrows Capital have led a $230m investment round in the Avalanche network, buying up the company’s native crypto currency AVAX.
R/Crypto Fund, Dragonfly and CMS Holdings were also among investors who bet big on Avalanche, an ultra fast, eco-friendly blockchain protocol which supports a growing ecosystem of DeFi projects. Proceeds from the sale will support and accelerate the rapid growth of DeFi, enterprise applications, and other use cases on Avalanche’s public blockchain.
“We are pleased to support Avalanche as the platform continues to grow its vibrant community of open source developers,” said Olaf Carlson-Wee, Founder and CEO, Polychain Capital. “We look forward to seeing the next generation of applications launching on the platform.”
Avalanche has experienced rapid growth since launching in 2020 with the AVAX token now the thirteenth largest crypto currency in the world by market cap. The project seeks to solve the scaling issues faced by older blockchains. While the Ethereum blockchain can process 14 transactions per second Avalanche can process 4,500.
Emin Gün Sirer, Director at the Avalanche Foundation and an assistant professor at Cornell University, said, “Avalanche has quickly turned promise and potential into real-world impact and value creation for DeFi users and developers.”
“The community of builders rallying around the network is a testament to its competitive edge, and there is still so much potential yet to be tapped at the intersection of institutional and decentralized finance on Avalanche,” he added.
AVAX has jumped by 21 per cent in the past 24 hours and is trading at approximately $64, up 1636 per cent this year to date.