Ava Labs, a New York-based blockchain company that develops the Avalanche network is raising $350 Million at a valuation of $5.25 Billion.
Discussions about capital infusion have been taking place amid the market’s threat of lower price levels and an indication that investors are making a small amount of profit.
As per Bloomberg’s sources, the new valuation would make Ava Labs one of the world’s most highly valued cryptocurrency startups.
Cornell computer scientists created the company in 2018. Ava Labs was founded by Cornell computer scientists in 2018.
Avalanche has been positioned as an alternative to Ethereum.
AVAX token saw a substantial price increase and has since surpassed the top 10 most valuable cryptocurrencies in terms of market capitalization. The latest CoinMarketCap data shows that the asset traded at $80, after a daily increase of 5%.
At the backdrop of Avalanche Summit in Barcelona, Darryl Wang, a former investor at the Three Arrows Capital offshoot DeFiance Capital, said, “Avalanche has successfully reached escape velocity.” He also revealed that he had shifted from 100% Ethereum to most other EVM-compatible chains and that 90% of his transactions are on Avalanche.
Although it supports a strong DeFi ecosystem, smart contract-driven applications and other smart contracts-driven applications its TVL has cooled down amid wider market turmoil. According to DeFi Llama statistics, the Avalanche total value has fallen to $14.72 Billion as of April 14.
Ava Labs also extended financial support to metaverse investments within the network. In collaboration with Aave Companies, Golden Tree Asset Management, Wintermute, Jump Crypto, Valkyrie, and Securitize, Ava Labs recently launched a $290 million incentive program called “Multiverse,” aiming to help develop the subnet functionality on its network.