Avalanche Plans $1 Billion Fund to Boost AVAX Adoption
Avalanche, the Layer-1 blockchain by Ava Labs, is in talks with investors. It aims to create two US-based “digital asset treasury” companies. The goal is to raise over $1 billion to buy millions of AVAX tokens at a discount.
According to a Financial Times report, Avalanche will offer discounted AVAX tokens to firms holding large crypto amounts. This move aims to increase liquidity and adoption amid rising institutional interest in blockchain.
The plan lets companies accumulate AVAX without affecting market prices immediately. Funds raised will support Avalanche’s growth. They will be used to develop real-world asset tokenization, decentralized finance (DeFi), and custom subnet blockchains.
Background on Avalanche and Its Market Position
Launched in 2020, Avalanche offers a scalable alternative to Ethereum. It features three chains: X-Chain for assets, C-Chain for smart contracts, and P-Chain for platform coordination. The network uses the Avalanche Consensus Mechanism for fast finality and low fees.
Avalanche has attracted over $2 billion in total value locked (TVL), ranking it among the top 10 blockchains. It has also partnered with companies like Toyota to develop blockchain-based mobility networks.
AVAX Token Performance
Following the news, AVAX token price rose 6.8% in 24 hours to $28.80. It now ranks 16th by market capitalization, according to CoinMarketCap data. Trading volume increased over 8% to $1.84 billion in the same period.
