According to a report published by Bloomberg on Thursday, Ava Labs is on track to raise a new $350 million funding round at a $5.25 billion valuation. Details of the deal have not been made public. Ava Labs is the main developer of the Avalanche (AVAX) blockchain.
The total value locked, or TVL, on AVAX currently stands at $14.6 billion, according to data from DeFi Llama. The decentralized finance, or DeFi, lending and lending protocol Aave accounts for 33.72% of the market share on the blockchain.
AVAX has become one of the most popular blockchains, surpassing a market cap of $21.3 billion. Since the launch of its mainnet in September 2020, the blockchain has grown into an ecosystem of approximately 450 individual projects, has decommissioned $118 million worth of AVAX through token burns, and has attracted more than 1.5 million community members.
As Cointelegraph reported last November, lThe Avalanche Foundation, a leading organization within the Avalanche ecosystem, launched a $200 million fund to incentivize developers to build on the network. Two months earlier, in September 2021, the foundation raised $230 million through a token sale spearheaded by Polychain and Three Arrows Capital to grow its DeFi ecosystem. At that time, the TVL of the blockchain stood at USD 14 billion, while its infrastructure supported some 270 projects.
More recently, the organizations behind the Terra algorithmic stablecoin blockchain purchased a total of $200 million worth of AVAX for their Terra USD strategic reserves. To justify the investment, Terra co-founder Do Kwon cited the strong growth of the blockchain ecosystem and the loyalty of its users.
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