Ava Labs, the parent company of smart contract platform Avalanche, has found a new $350 million in funding. With this amount of funds raised, Ava Labs' market capitalization will increase to $5.25 billion.
According to Bloomberg's report, Ava Labs has not yet confirmed this high-stakes investment round, but with the release of the news, the native token of the smart contract network, AVAX, has returned to the $80 band with an increase of around 7 percent since yesterday evening.
In September of last year, Avalanche raised a substantial $230 million in funding through the sale of AVAX in a similar investment round. The financing provided by Avalanche, which is considered one of the most powerful projects among smart contract platforms as an Ethereum alternative, is seen as a significant amount. With this financing, Avalanche is thought to be stronger in competition with other smart contract platforms such as Solana and Terra.
AVAX, the 4th largest smart contract platform
Avalanche is currently the 4th largest smart contract platform with a total locked value of approximately $10.7 billion. The platform's token, AVAX, remains the 10th largest cryptocurrency with a market capitalization of $21.75 billion today. With this development, AVAX became the crypto asset that saw the most value increase among the top 10 cryptocurrencies in the morning.
Avalanche network continues to attract attention
Although details about the last investment round are not yet clear, Avalanche has received funding from major investment companies such as Polychain Capital, Three Arrows and Andreessen Horowitz in the past.
Regarding this development, the news of Terra's non-profit organization Luna Foundation Guard adding $100 million worth of AVAX to its UST reserves had repercussions in the market.
Cryptocurrency markets continue to be under pressure, while global companies continue to be interested in crypto companies. Related to the matter, this week saw Blackrock and Fidelity raise $400 million in new funding to USDC issuer Circle.