According to a Bloomberg report on April 14, Ava Labs, the creator of the Avalanche blockchain, is in the process of obtaining a fresh fundraising round that would give it a $5.25 billion valuation.
Ava Labs was co-founded in 2018 by Cornell University professor Emin Gün Sirer, who envisions Avalanche competing with Ethereum and Solana in terms of speed and reduced transaction costs, as well as becoming the blockchain of choice for decentralised software (dapp) developers.
According to DappRadar statistics, Avalanche offers roughly 250 active apps ranging from decentralised finance (DeFi) to games.
- According to sources, the Brooklyn, New York-based business is financing $350 million.
- The funding round was not made public, those individuals talked on the condition of anonymity, with one person confirming the valuation.
- The funding will propel Ava Labs into the coveted unicorn club and make it a more valuable crypto startup than Binance’s US unit, which received $200 million earlier this month at a valuation of $4.5 billion.
- A $5.25 billion valuation would put Ava Labs in the upper echelons of the world’s most valuable crypto startups, though it is still some way behind Ethereum scaler Polygon, which is worth $20 billion according to its most recent funding round, and USDC stablecoin backer Circle, which was valued at $9 billion in February.
- Avalanche, like numerous other blockchains, is attempting to entice projects and apps away from Ethereum by promising high speeds and cheap transaction costs.
- Avalanche, in particular, has “subnet” capability, which allows application-specific blockchains to be set up at scale.
The network has experienced several significant advancements in recent weeks that might potentially increase its expansion. The Avalanche Foundation announced a $290 million fund last month to assist developers in increasing the number of subnets—validators that let others create their own Layer 1 or Layer 2 blockchains.
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