Avalanche Foundation has raised $250 million through a private locked-token sale led by Galaxy Digital, Dragonfly, and ParaFi Capital. $AVAX
prices gained nearly 9% after the announcement to trade at $52.80.
As the crypto market takes a breather following Bitcoin’s solidification above $100,000, AVAX seems to be gearing up for a rally.
Avalanche Raises Funds Ahead of Upcoming Network Upgrade
Avalanche Foundation announced that over 40 investment firms participated in the $250 million funding round. This announcement follows the testnet launch of Avalanche9000 on November 25.
The Avalanche9000 upgrade is scheduled to go live on the mainnet on December 16. This upgrade aims to reduce the blockchain’s deployment costs by 99.9%, allow interchain communication, and unlock over $40 million in developer rewards.
“Avalanche9000 is driving the next generation of scalable, purpose-built L1 blockchains. Over 500 L1 chains are already in development across sectors like tokenization of real-world assets, loyalty and rewards, gaming, payments, and institutional programs,” Avalanche Foundation posted on X (formerly Twitter).
Amidst all this, the Avalanche blockchain has hit another milestone. The network’s Total Value Locked (TVL) has crossed $1.65 billion, its highest in almost two years. The growth in TVL points to Avalanche’s appeal in the decentralized finance (DeFi) sector, potentially attracting new users and capital.
Avalanche TVL Throughout 2024. Source: DeFiLlama
When it comes to the blockchain’s native token, AVAX has witnessed a significant surge over the last 30 days. The token’s price rose by 50% over the past month to trade at $52.80 at press time.
In December, the token managed to cross $50 but appears to have stagnated around $52 after failing to hold above $54 on December 9. If the momentum following the announcement holds, AVAX can move past $60 and reclaim its earlier highs.
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AVAX Monthly Price Chart. Source: BeInCrypto
The Relative Strength Indicator at 62 showed that there is still room for a price surge before hitting the overbought zone. The Bollinger Bands further confirmed this view by showing that AVAX’s price was entering a volatile phase. The bands were widening after a squeeze, which is indicative of a breakout.
However, Santiment data showed that AVAX’s weighted sentiment was in the negative region, which could cause trouble for the token. Nevertheless, the strong volumes supporting the price hike over the past 24 hours show that there is demand.
Further data revealed that 80% of the addresses were in profit at press time, while 16% were ‘out of the money.’ This meant that only 16% of AVAX holders were in losses now. If there is enough demand and AVAX rallies higher, then these holders could turn profits or enter the break-even point.