According to a statement released on September 16, Polychain and Three Arrows Capital are heading a $230 million investment in Avalanche’s public blockchain infrastructure.
R/Crypto Fund, Dragonfly, CMS Holdings, Collab+Currency, Lvna Capital, and a slew of other industry angel investors helped fund the massive round.
The big investment news propelled AVAX to a new all-time high of $68.84 in the early hours of September 17. At the time of publication, the price had dropped to $67.10, down roughly 2.7 percent from its all-time high.
AVAX is now up almost 50% over the last week and 135 percent from its 30-day low of $28.81, making it one of the crypto market’s strongest cryptocurrencies at the moment, according to CoinMarketCap.
According to the Avalanche Foundation, earnings from the private token sale, which closed in June, would be used to assist DeFi develop and promote activities that run on its blockchain.
Avalanche debuted in September 2020, just under a year ago. Since then, more than 270 projects have been built on the platform, including well-known names like Tether, SushiSwap, Chainlink, Circle, and The Graph.
The exorbitant cost of gas on layer 1 Ethereum has boosted demand for Avalanche. For the previous five days, average transaction costs have been increasing again, and they are now at $26.
This is far too much for the typical user to spend for a transaction, which is why many people are migrating to Avalanche, a quicker and less expensive network.