-
Avalanche Foundation’s recent $250 million fundraising round is positioning the blockchain for significant advancements as it approaches a major upgrade.
-
The upgrade, known as Avalanche9000, aims to enhance scalability and reduce deployment costs, attracting heightened interest from investors and developers alike.
-
“Over 500 L1 chains are already in development across sectors like tokenization of real-world assets,” highlighted the Avalanche Foundation in their recent announcements.
Avalanche Foundation has successfully raised $250 million, gearing up for significant network upgrades that promise to attract new investors and improve scalability.
Avalanche Raises Funds Ahead of Upcoming Network Upgrade
Avalanche Foundation’s recent funding initiative saw participation from over 40 leading investment firms, bringing in $250 million to bolster its blockchain capabilities. This capital influx comes on the heels of the testnet launch of Avalanche9000, which debuted on November 25, setting the stage for enhanced functionality.
The highly anticipated Avalanche9000 upgrade is slated to officially launch on the mainnet on December 16. This critical enhancement intends to lower blockchain deployment costs by an astounding 99.9%, facilitate interchain communication, and offer developers access to over $40 million in rewards.
“Avalanche9000 is driving the next generation of scalable, purpose-built L1 blockchains,” emphasized the Avalanche Foundation on its X (formerly Twitter) account. This statement encapsulates the exciting potential ahead for the Avalanche ecosystem.
Further bolstering its financial framework, the Avalanche blockchain’s Total Value Locked (TVL) has achieved an impressive $1.65 billion, marking its peak in nearly two years. This growth indicates an increasing attraction to Avalanche within the decentralized finance (DeFi) sector, suggesting a healthy influx of new users and capital as the network continues to evolve.
As for the native token, AVAX has experienced a considerable upturn, skyrocketing by 50% in the last month, pushing the price to $52.80 at the time of this report. Following a rally past $50 in early December, its price has seen fluctuations yet remains poised to challenge the $60 mark again.
The Relative Strength Indicator (RSI), currently at 62, indicates that there is potential for further price appreciation before reaching overbought territory. Additionally, the widening of the Bollinger Bands suggests a period of volatility may approach, pointing to a likely breakout ahead.
However, Santiment data revealed that AVAX’s weighted sentiment was currently in the negative zone, which could create downward pressure on the token. Despite this, the significant trading volumes indicating strong demand have supported the token’s recent price escalation.
Moreover, data indicates that more than 80% of AVAX wallet addresses are currently profitable, while only 16% are in a loss position. This scenario presents a favorable landscape for a potential price rally if demand remains robust, as many holders may see their positions move towards profitability or breakeven.
Conclusion
The Avalanche Foundation’s substantial fundraising and the impending Avalanche9000 upgrade will likely enhance the platform’s scalability and user engagement, inviting more investments into the ecosystem. With AVAX’s recent price movements and the bolstering of its Total Value Locked, there is a clear outlook of potential growth in the upcoming weeks. Investors should remain mindful of market sentiment, as it will be a crucial element in determining the trajectory of AVAX in the near future.
