Showing posts with label Avalanche. Show all posts
Showing posts with label Avalanche. Show all posts

Ava Labs raises $350 million to expand Avalanche, which is valued at $5.25 billion.

Ava Labs, the firm behind the Avalanche blockchain, is said to be in the midst of obtaining more funds. Ava Labs, the Avalanche blockchain's principal developer, is looking to raise $350 million in investment. According to a Bloomberg article citing people familiar with the situation, the latest round will value the New York-based business at $5.25 billion.



Those persons spoke on the condition of anonymity since the financing was not made public, with one source confirming the valuation. If verified, the fundraising will propel Ava Labs into the coveted unicorn club, making it a more valuable cryptocurrency company than Binance's US affiliate, which received $200 million at a valuation of $4.5 billion earlier this month.

According to Crunchbase, Ava Labs has raised a total of $290 million in investment over seven rounds. The company's most recent funding round occurred in September 2021, when Polychain Capital and Three Arrows Capital launched a private token sale that raised $230 million.

The AVAX token, which underpins the Avalanche blockchain, reacted warmly to the news, rising 5% to an intraday high of $81.74 earlier on Thursday.

Despite a little reversal since then, AVAX is still up roughly 4% on the day, trading at $79.59 at the time of writing, according to CoinMarketCap. However, it is still down over 5% for the week, owing to the overall crypto market downturn.

AVAX is the industry's tenth largest cryptocurrency by market capitalization, valued at nearly $21.4 billion.


Taking aim at the opposition

Emin Gün Sirer, a Cornell University professor, co-founded Ava Labs in 2018 with the goal of making Avalanche a blockchain of choice for decentralized app (dapp) developers, competing with Ethereum and Solana on speed and transaction costs.

Avalanche supports roughly 250 active apps, according to statistics from DappRadar, ranging from decentralized finance (DeFi) to games. According to DefiLlama, Avalanche is the fourth-largest blockchain in terms of total value locked (TVL), behind Ethereum, Terra, and the BNB Chain, with approximately $10.6 billion protected across the DeFi universe.

The network has witnessed several significant advances in recent weeks that might help it flourish. The Avalanche Foundation announced a $290 million fund last month to assist developers in expanding the number of subnets—validators that let others to create their own Layer 1 or Layer 2 blockchains.


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Ampleforth is integrated by Avalanche to boost the DeFi Ecosystem.

Avalanche has released the AMPL token, a stablecoin rival. The AMPL token may now be used in DeFi protocols on the network thanks to Ampleforth's integration with Avalanche.



On Avalanche, Ampleforth Arrives

The most recent protocol to be integrated with Avalanche is Ampleforth. Ampleforth's developer, Fragments Inc., said Tuesday that it has joined the growing Layer 1 network. The AMPL coin, an Ethereum-based unit of account, may now be used to denominate Avalanche DeFi protocols stable contracts.

Ampleforth positions itself as a direct rival to stablecoins backed by central banks. The AMPL token takes a different strategy than other stablecoins in the crypto arena, which depend on conventional banks or lenders to support their stablecoins.

The algorithms of the Ampleforth protocol convert pricing volatility into supply volatility. This implies that, although the price of AMPL tends to oscillate about $1, the quantity of tokens in a holder's wallet fluctuates based on whether the network grows or shrinks. This approach seeks to make AMPL a more decentralized stable unit of account than other current stablecoins.

DeFi protocols on the network will be able to denominate stable contracts utilizing AMPL tokens instead of current stablecoins thanks to the integration with Avalanche, offering a greater degree of decentralization. Fragments Inc. CEO Evan Kuo remarked of the update:

"It's strange that the DeFi ecosystem is so reliant on centralized stablecoins for liquidity and lending collateral right now." With the shifting regulatory environment, it's critical for DeFi to have a decentralized, uncensorable financial building block with some kind of pricing predictability or stability.”

The action by Avalanche comes when the overall value locked in DeFi protocols on the network reaches new highs. Avalanche now supports $8.6 billion in network liquidity and has attracted numerous Ethereum DeFi blue chips, including Aave and Curve.

Avalanche has risen to new highs, along with numerous other chains, since August, owing to a spike in Layer 1 ecosystems. The EVM-compatible network has risen swiftly in market value, and is presently ranked 13th.

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