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

The chain, which debuted in September 2020, is quickly gaining traction. With a market cap of $21.8 billion, AVAX is now the 10th largest token by market cap.

It is unclear how fundraising will work. However, Avalanche has secured funding from a number of large crypto investors including Polychain Capital, Three Arrows, and Andreessen Horowitz.

The Avalanche Foundation raised $230 million in September, through a private sale of AVAX tokens.

DeFi is interested in Avalanche.

Terra community Luna Foundation Guard (LFG) recently contributed nearly $100 million of AVAX to its UST reserve. while AVAX has its own DeFi protocol, participation from larger entities like Terra is a positive indicator for the token.

The acquisition of LFG has led to an increase in AVAX's price.