Quick take:
- Ava Labs is reportedly planning a $350M fundraising at a $5.25 billion valuation.
- The Avalanche developer wants to scale its Dapp platform to compete with the likes of Ethereum and Solana according to a report published by Bloomberg.
- The platform is targeting blockchain gaming and crypto lending to drive growth.
Ava Labs is throwing its hat into the decentralised app (Dapp) platforms race amid reports it is raising $350 million. The fundraising values the Dapp company at about $5.25 billion. According to the report by Bloomberg, Avalanche is looking to scale its offering in the blockchain gaming and lending Dapps to rival industry leaders Ethereum and Solana.
Avalanche’s goal is to steer developers away from Ethereum to its platform by offering high speeds and low transaction fees for applications. This puts it in the same category as popular blockchain networks dubbed the “Ethereum Killers”.
The platform has been gaining traction recently following the Barcelona summit in March. Currently, there are approximately 250 developer apps running on Avalanche, including gaming apps, NFTs and DeFi.
The NFT and blockchain gaming craze, has propelled $AVAX, Avalanche’s native token to a market capitalization of $21 billion with the token price more than quadrupling since August last year. The latest fundraising comes at the back of three previous rounds including a $230 million token sale completed last year, which was preceded by another $12 million private sale in 2020.
Avalanche’s subnet functionality enables the scaling of blockchain specific applications without compromising transaction speed.
The platform was founded by Turkish-American computer scientist Emin Gün Sirer back in 2018. It managed to raise $6 million in the following year, backed by leading Web3 venture capital investment firm Andreessen Horowitz.
The decentralised apps market has gained a lot of attention amid the metaverse and NFT buzz, with Ethereum scaling protocol Polygon completing a $450 million fundraising following a private sale of its $MATIC token in February.
The market has also attracted several partnerships and acquisitions with consolidation accelerating amid the influx of venture capital investment.
Although Avalanche still trails several of its rivals in terms of market value, the fundraising could put it in the echelons of the leading decentralised apps platforms in the Web3 space.
Stay up to date:
