The Avalanche community accelerator (known as the Avalanche colony) has raised nearly $19M from venture capitalists to raise funds for its next-gen projects. The principal investor during this round was the Avalanche foundation. Other notable investors include some Avalanche ecosystem members, Hash key, and Bixin ventures.
Utilizing The Funds
Apart from developing projects on this network, the raised funds will also be used to offer liquidity to DeFi protocols. The Colony also plans to inaugurate the ecosystem farming project, allowing any member of the Avalanche community to invest in any developing projects.
10% of the funds accessible to the Colony will be staked in the AVAX (Avalanche’s native token). A further 10% will be allotted to the top five projects on the network. The ranking of these projects depends on their market cap. 50% will be given to teams and projects to assist them as they develop on the network. The leftover will be used to support liquidity networks.
Avalanche became one of the leading blockchains in the crypto space following funds support from top crypto venture capitalists such as Polychain Capital and Three arrows capital. Consequently, AVAX’s price rose sharply and has gained almost 3,000% in its YTD. Avalanche’s overall evaluation of about $26b makes its native token (the AVAX) rank among the top 12 cryptocurrencies globally.
AVAX And SHIB Struggling To Replace Each Other On Crypto Rankings
As widely reported in various media, the Avalanche Foundation launched a $250m support fund to assist developers in creating in-demand projects on the network. Part of the money was also raised through venture capitalists, most notably the ones mentioned above. After the fundraising event was over, the Avalanche foundation disclosed that the funds would be used mainly to support projects related to NFT, DeFi, culture, and enterprise applications.
Today, SHIB was listed on Kraken exchange and coupled with a whale investment, SHIB price, its trading volume, and market cap rose enough to replace AVAX on the crypto standings. However, AVAX had replaced SHIB on the log following a partnership with the leading consulting firm, Deloitte, which would enable the latter to create emergency response systems for the government. It remains to be seen for how long both tokens would jostle to outpace one another on the crypto rankings.
AVAX Price Action
AVAX continues to fluctuate around the 21-day EMA in the last 48 hours. However, the bulls are yet to gain a stronghold of the price, indicating that there would be less demand as the price goes up.
This slight bounce indicates that a break beneath the 21-day EMA price is possible. Should the bears keep control and push the price lower than the 21-day EMA price and $100 support levels, there would be increased selling pressure.
Hence, its next support would be at about $91.40, which corresponds to the 0.618 Fib retracement range. However, if AVAX uses the support levels as a launchpad for a new bullish run, it might be possible for the bulls to regain control of its price. Increased buyer action could push the price over the $125 mark. Then, it can flip this price to support as it continues its bullish run and set a new peak price higher than the previous one of $148.