The Avalanche Foundation has secured $250 million through a private token sale led by Galaxy Digital, Dragonfly, and ParaFi Capital. Following the announcement, AVAX prices surged nearly 9%, trading at $52.80. With Bitcoin stabilizing above $100,000, AVAX is positioning itself for another rally.
Major Network Upgrade on the Horizon
The funding announcement coincides with Avalanche’s upcoming Avalanche9000 upgrade, which launched on the testnet on November 25. Scheduled for a December 16 mainnet release, the upgrade promises to slash blockchain deployment costs by 99.9%, enable interchain communication, and unlock $40 million in developer rewards.
This development highlights Avalanche’s commitment to innovation and scalability, making it a strong contender in the decentralized finance (DeFi) ecosystem.
DeFi Growth and TVL Milestone
Avalanche’s Total Value Locked (TVL) has surpassed $1.65 billion—the highest in nearly two years. This surge in TVL underscores its rising popularity in the DeFi sector, drawing both users and capital.
Meanwhile, AVAX has recorded impressive gains. Over the last 30 days, the token’s price jumped by 50%, reaching $52.80. However, it has struggled to stay above $54, creating resistance at that level.
Technical Indicators Suggest Further Gains
The Relative Strength Index (RSI) for AVAX is currently at 62, indicating room for additional price growth before entering the overbought zone. Bollinger Bands show increased volatility, hinting at a potential breakout.
Despite this positive outlook, Santiment data reveals negative weighted sentiment for AVAX. While this could slow momentum, strong trading volumes over the last 24 hours suggest continued demand.
Investor Sentiment and Profit Potential
At press time, 80% of AVAX addresses are in profit, while only 16% remain at a loss. If demand persists and AVAX rallies higher, more holders could see profits or reach the break-even point.
