The Avalanche team announced a $250 million raise through a private token sale ahead of the highly anticipated Avalanche9000 upgrade.
Avalanche announces a $250 million private locked-token sale led by Galaxy Digital, Dragonfly, and ParaFi Capital, highlighting the growing confidence in Avalanche’s blockchain ecosystem ahead of the Avalanche9000 upgrade 🤝https://t.co/tWmn5u9LbG
— Avalanche9000 🔺 (@avax) December 12, 2024
More than 40 investment firms participated in the funding round, led by Galaxy Digital, Dragonfly, and ParaFi Capital.
The development team highlighted that this influx of capital follows the launch of the Avalanche9000 testnet on November 25. They described the upgrade as transformative, reducing the cost of deploying Avalanche L1 client blockchains by 99.9% and cutting transaction costs on the Ethereum-compatible C-Chain by 25 times.
Alongside the testnet launch, Avalanche introduced a retroactive developer grant program with a $40 million budget to support ecosystem growth.
The Avalanche9000 mainnet is scheduled to launch on December 16.
According to Avalanche founder Emin Gün Sirer, the token sale’s primary objective wasn’t fundraising.
“The main goal was alignment and incentivizing the right partners to collaborate,” Sirer explained to Forbes.
Estimates by the publication suggest Avalanche’s treasury holds around $3 billion worth of AVAX tokens.
As of now, AVAX has rebounded to $51.70, recovering from a 20% drop on December 9–10. The token’s market capitalization stands at $21.1 billion.
Since the start of November, amid broader crypto market growth, AVAX has approximately doubled in value.
The token’s all-time high of $144.9 was recorded in November 2021, just 13 months after Avalanche’s mainnet launch.
In October 2024, Avalanche unveiled an on-chain payment card in partnership with Visa.
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