Avalanche Foundation pushes AVAX price to seven-month high with $1 billion fundraising talks
AVAX climbed to a seven-month high after stories surfaced that the Avalanche Foundation is pursuing up to $1 billion in funding to launch devoted treasury firms holding its token.
According to CryptoSlate knowledge, AVAX rose almost 9% previously 24 hours to attain $29, its strongest price stage since February.
The token’s efficiency outpaced the broader top-20 crypto belongings, which superior by a median of three% over the identical interval. Notably, the price improve additionally positioned it among the many high 10 on CryptoSlate’s Biggest Gainers checklist for Sept. 11.
This surge displays broader momentum inside the Avalanche ecosystem.
DeFiLlama knowledge exhibits that decentralized exchanges on the community processed nearly $900 million in buying and selling quantity previously day, the very best determine since March and the sixth-largest amongst all blockchain networks.
At the identical time, tokenized real-world belongings like BlackRock’s BUIDL deployed on Avalanche now exceed $450 million. According to RWA.xyz knowledge, this displays a 139% improve within the final month.
AVAX treasury firm
This improvement comes because the Avalanche Foundation is reportedly in superior talks to set up at the least two digital asset treasury firms (DATCOs) centered on the AVAX token.
According to a Financial Times report, the primary deal includes elevating as a lot as $500 million by means of a non-public funding in a Nasdaq-traded firm. Hivemind Capital is main the hassle, which has advisory help from SkyBridge Capital founder Anthony Scaramucci and will shut earlier than the top of the month.
The second deal, structured by means of a particular objective acquisition automobile led by Dragonfly Capital, goals to increase one other $500 million and is anticipated to conclude in October.
The report acknowledged that the proceeds from each efforts could be directed towards buying AVAX tokens at discounted costs, successfully seeding the treasury firms and strengthening the token’s market base.
Avalanche Foundation’s initiative follows a rising development of DATCO launches throughout the trade.
According to Strategic ETH data, Ethereum-focused treasury firms fashioned earlier this yr have already accrued greater than 4.9 million ETH price $21.7 billion. Similarly, CoinGecko data exhibits Solana DATCOs have acquired over 4.4 million SOL valued at roughly $992 million.
These treasury acquisitions have helped enhance token valuations and strengthened institutional demand for digital belongings. So, if Avalanche efficiently finalizes its fundraising plans, the technique might amplify curiosity in AVAX and prolong its newest price rally.
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