- The Avalanche Foundation has revealed an injection of $230 million into its DeFi ecosystem.
- The public blockchain aims to accelerate the growth of DeFi and enterprise applications on the network.
- AVAX surged to a new all-time high following the bullish announcement.
The Avalanche Foundation has announced a new investment round from a venture capital group led by Polychain Capital and Three Arrows Capital. The $230 million raised will support liquidity on the network’s decentralized finance (DeFi) ecosystem. Kyber Network is also launching its automated market maker (AMM) on the Avalanche blockchain as part of its $180 million incentive program.
Avalanche focuses on growing DeFi ecosystem
The Avalanche Foundation stated that it would use the $230 million fund to support and accelerate the growth of DeFi and enterprise applications, along with other use cases on its public blockchain.
While the funding round was led by PolyChain Capital and Three Arrows Capital, CMS Holdings and Dragonfly Capital, among others, also took part.
Avalanche continues to aim for value creation for DeFi users and developers. Avalanche founder Emin Gün Sirer stated that there is more potential yet to come at the “intersection of institutional and decentralized finance on Avalanche.”
Kyber Network is also launching its AMM on Avalanche as part of the base layer’s $180 billion incentive program. The network has already launched its dynamic market maker on protocols including Ethereum, Polygon and Binance Smart Chain.
The move from Kyber Network comes after the $230 million investment into Avalanche’s DeFi ecosystem. According to the blockchain’s founder, enhancing liquidity opportunities continues to be a key factor in growing the DeFi ecosystem as it aims to welcome new participants into the community in the future.
Avalanche’s native cryptocurrency, AVAX has reached a new all-time high amid the new announcements concerning the developments on the network.
AVAX price surges to new all-time high
AVAX price has reached its optimistic target given by the parallel channel chart pattern on the 4-hour chart. Surging above the September 12 high at $64.94 was a significant move for Avalanche, leading to the recent all-time high at $68.83.
The smart contract token has formed a parallel channel since late August, signaling that the coin could endure a period of consolidation. AVAX price finally broke out of the sideways trend on September 10, opening up the possibility of a 40% move.
AVAX price has sliced above the target of reaching the topside trend line of the upper parallel channel, which currently acts as the first line of defense for Avalanche.
AVAX/USDT 4-hour chart
The next target for AVAX price appears to be at the 127.2% Fibonacci retracement level at $74.26, should the buyers continue to step in and incentivize Avalanche to climb higher. The Momentum Reversal Indicator (MRI) also notes that the breakout line sits around this level, suggesting that if the bulls are able to slice above this area, the altcoin could head even higher toward the 161.8% Fibonacci retracement level at $91.91.
However, should the bulls’ aim fall short, AVAX price will discover support at the September 12 high at $64.94, then at the 50 four-hour Simple Moving Average (SMA) at $53.17. Further lines of defense will emerge at the MRI’s support line, which sits near the 78.6% Fibonacci retracement level at $49.46 before slipping further toward the 100 four-hour SMA at $48.73.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin ETFs beat Gold ETFs with 65% gain since launch
Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand
Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF
Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.