Avalanche raises $250m in token sale to drive scalability with Avalanche9000 upgrade
Avalanche raises $250m in token sale to drive scalability with Avalanche9000 upgrade
Layer 1 blockchain project Avalanche has raised $250 million in a locked token sale, led by Galaxy Digital, Dragonfly, and ParaFi Capital.
Other participants included SkyBridge, SCB Limited, Hivemind, and Morgan Creek Digital. The funds will primarily support the Avalanche9000 upgrade, an ambitious initiative to significantly reduce blockchain deployment costs and transaction fees while enhancing scalability.
The Avalanche9000 upgrade, currently in testnet, promises to cut blockchain deployment costs by 99.9% and transaction fees by 25 times. The mainnet rollout is scheduled for Dec. 16, with the upgrade expected to revolutionize how decentralized applications are developed. In a November testnet launch, over $40 million in retroactive rewards were provided to developers building on the network.
Driving institutional adoption and onchain finance
The investment also aims to foster institutional adoption of blockchain technology. Jason Urban, Global Head of Trading at Galaxy Digital, emphasized that Avalanche’s growth and scalability are crucial for the industry’s future. “We are providing Avalanche with the strategic resources and services needed to foster institutional participation and long-term growth,” Urban said.
ParaFi Capital founder Ben Forman highlighted Avalanche's architectural strengths, such as fast transaction finality and high throughput, which make it a preferred platform for tokenizing real-world assets securely and compliantly. Forman noted that ParaFi utilized the Securitize platform on Avalanche to tokenize a portion of its latest venture fund.
Avalanche has over 500 Layer 1 chains in development across various sectors, including gaming, payments, and institutional programs. Projects like DeFi Kingdoms and Dexalot exemplify its growing ecosystem. Additionally, Uplink, the first decentralized physical infrastructure network (DePIN) on Avalanche, launched this week, aiming to decentralize internet connectivity by incentivizing infrastructure sharing in underserved areas.
With its technological advancements and robust institutional backing, Avalanche is positioning itself as a leader in the evolution of blockchain and onchain finance.
Read also: BlackRock advises to invest 2% of the portfolio in Bitcoin
