Avalanche Raises $250M Ahead of Avalanche9000 Network Upgrade Launch

Avalanche, the layer-1 blockchain, successfully closed a $250 million private locked-token sale on December 12, with participation from over 40 companies. The sale, led by prominent investors Galaxy Digital, Dragonfly, and ParaFi Capital, marks a significant milestone for the blockchain ahead of its highly anticipated "Avalanche9000" upgrade.
Wide Participation in the Token Sale
The token sale saw support from a diverse group of investors, including well-known firms such as SkyBridge, SCB Limited, Hivemind, Big Brain Holdings, Hypersphere, Lvna Capital, Republic Capital, Morgan Creek Digital, and FinTech Collective. This broad participation highlights growing confidence in Avalanche as a leading player in the blockchain space.
The $250 million raised will add to Avalanche’s treasury, which is estimated to currently hold $3 billion in AVAX tokens. The funds raised in this round will further strengthen Avalanche’s ecosystem and help support the network's growth in the lead-up to the Avalanche9000 upgrade.
Avalanche9000: The Most Significant Upgrade in Avalanche’s History
The launch of Avalanche9000 is set to be one of the most important milestones in Avalanche’s evolution. Built on the foundation of Avalanche’s earlier “Etna Upgrade” and key community proposals ACP-77 and ACP-125, Avalanche9000 will bring several game-changing improvements to the network. One of the most notable changes is the reimagining of Avalanche’s subnets, which will now be referred to as layer-1s.
Additionally, the upgrade introduces a shift in validator cost structure from a 2,000 AVAX per-instance fee to a subscription model charging 1.33 AVAX per month. Another critical aspect of Avalanche9000 is its focus on enhancing interchain communication, further improving the network's scalability and cross-chain functionality.
Avalanche9000 first went live on the Avalanche “Fuji” testnet on November 25, and the team is now preparing for the mainnet launch scheduled for December 16. This upgrade promises to solidify Avalanche’s position as a leading platform for decentralized applications and enterprise blockchain solutions.
Market Response and AVAX Price Movement
At the time of publication, AVAX, the native token of Avalanche, was trading at $54.11, reflecting a 13% increase over the past 24 hours and a 45% rise over the past year. The price movement is likely fueled by optimism surrounding the upcoming Avalanche9000 upgrade, with investors speculating on the positive impact it will have on the network’s functionality and adoption.
Avalanche's Growing Influence in On-Chain Institutional Finance
Ben Forman, founder and managing partner of ParaFi Capital, praised the upcoming upgrade in a blog post, emphasizing Avalanche’s significant role in the growth of “on-chain institutional finance.” As the blockchain ecosystem continues to mature, the Avalanche9000 upgrade is expected to further enhance the network's appeal to both institutional investors and developers looking to build scalable, interoperable decentralized applications.
With the successful closure of its $250 million token sale and the imminent launch of Avalanche9000, Avalanche is positioning itself for continued success and innovation in the blockchain space.
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