Avalanche raises $250m to fuel L1 upgrade

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Avalanche has secured $250 million in a fundraising round led by Dragonfly, ParaFi Capital, and Galaxy Digital.

The Avalanche blockchain raised the funds through token sales from over 40 investment ventures to support its ambitious Layer-1 blockchain overhaul, dubbed “Avalanche9000.” The $250 million injection will be used to develop technology aimed at reducing transaction costs and attracting more network validators, according to a statement from the L1 protocol.

Avalanche announced that the upgrade would slash on-chain application deployment costs by 99%, significantly lowering the entry barrier for both new and existing AVAX developers.

The Avalanche9000 upgrade is currently live on a testnet, providing developers with a space to conduct “blockchain dress rehearsals.” Network upgrades typically roll out on testnets before their deployment on the mainnet. Additionally, Avalanche announced $40 million in grants to incentivize developer activity. Previous reports stated that on-chain activity increased after the testnet and reward announcements.

Jason Urban, Galaxy Digital’s global head of trading, described the $250 million raise as a crucial step for blockchain’s future. Dragonfly also expressed high expectations for the AVAX upgrade, as highlighted by managing partner Haseeb Qureshi.

Ben Forman, ParaFi Capital’s founder and managing partner, stated:

AVAX surged 10% amid a market-wide crypto recovery in the last 24 hours. The asset cost $53.23 per coin at press time.