Newsmogul
December 12, 2024 — Avalanche, the Layer-1 blockchain platform, has secured $250 million in a private locked-token sale led by Galaxy Digital, Dragonfly, and ParaFi Capital. The funding round included participation from over 40 prominent investors, such as SkyBridge, SCB Limited, Hivemind, Big Brain Holdings, and Morgan Creek Digital. This milestone comes just days before the highly anticipated “Avalanche9000” network upgrade.
Avalanche announced the funding on X.com, highlighting its importance in bolstering the platform’s treasury, which is currently valued at around $3 billion in AVAX tokens. This latest raise follows a $230 million funding round in 2021 led by Polychain and Three Arrows Capital.
Strengthening the Ecosystem
The $250 million will be used to expand Avalanche’s capabilities, supporting infrastructure development, promoting decentralized applications, and accelerating blockchain adoption. Ben Forman, founder and managing partner at ParaFi Capital, expressed optimism about the platform’s future:
“The Avalanche9000 upgrade solidifies Avalanche as a major player in blockchain technology innovation.”
What Is Avalanche9000?
Set to launch on the mainnet on December 16, the Avalanche9000 upgrade is touted as the most significant update in the platform’s history. Built on the Etna Upgrade and community proposals ACP-77 and ACP-125, the update introduces several key improvements:
- Reimagined Subnets: Subnets will now be known as Layer-1s, reflecting their enhanced role within Avalanche’s architecture.
- Lower Validator Costs: The cost for validators will shift from a 2,000 AVAX per instance model to a more accessible subscription fee of 1.33 AVAX per month.
- Improved Interchain Communication: New mechanisms will improve interoperability and cross-chain functionality.
The upgrade has already been tested on Avalanche’s “Fuji” testnet since November 25, receiving positive feedback from the community and developers.
Positive Market Response
Avalanche’s native token, AVAX, has seen a significant market response to the news. At the time of publication, AVAX was trading at $54.11, marking a 13% increase in the last 24 hours and a 45% gain over the past year. The rise reflects investor confidence in the upcoming upgrade and its potential impact on the ecosystem.
Looking Ahead
The Avalanche9000 upgrade represents a major step forward for the platform, with enhanced features designed to make it more scalable, efficient, and interoperable. With strong financial backing and a growing ecosystem of supporters, Avalanche is poised to solidify its place as a leader in the blockchain industry.
For further updates, visit Avalanche’s official website or follow their announcements on X.com.
