As a result of this positive development, Avalanche (AVAX) rose by 7%

Avalanche (AVAX), the native token on the blockchain of the same name, soars in funding amid news of further solicitations by Ava Labs. Ava, a leading developer of blockchain, could become one of the most valuable crypto businesses thanks to a planned funding round.

AVAX has risen more than 7% in the last 12 hours and is currently trading at $81.58. The cryptocurrency recovered most of its losses in the first three days of the recent rally, during which the broader cryptocurrency plunge put pressure on prices.

Avalanche is a well-known smart contract blockchain that many have dubbed the "ethereum killer" for its claims to correct various flaws in the larger network.

Ava Labs plans to raise $350 million.

Ava Labs is raising an additional $350 million in capital, valuing the company at $5.25 billion. The new funding comes from AVA X competing with rival smart contract chains such as Ether and Solana.