While the Ethereum blockchain network is moving into what the community hopes to be the last round of tests for the much-anticipated Ethereum 2.0 upgrade before its public mainnet launch, developers are also offering either integrated solutions to Ethereum’s network or brandishing new and improved alternatives to what Ethereum can offer. A new player in the market, the Avalanche project and the Avalanche blockchain protocol seems to have appealed to investors as it managed to sell all of its tokens within the first four hours of its public Initial Coin Offering (ICO) sale on July 15.
Led by AVA labs, the company behind Avalanche, the project raised a total of $42 million USD from this sale alone and all 72 million AVAX tokens priced at $0.85 and $0.50 in different rounds. This sale was open only to non-US accredited investors and the funds Avalanche raised will be added to an initial amount of $12 million USD that the project raised previously in a private sale round.
“It’s clear that the market was craving a project of this caliber. The success and velocity of the Avalanche sale is a testament to the quality of our project, and the impact it can have on both institutional and decentralized finance,” John Wu, President of Ava Labs shared.
An open-sourced protocol built for DeFi applications, it mainly solves the transaction speed challenge that has plagued the Ethereum blockchain network for years. It boasts transaction speeds comparable to that of Visa’s at approximately 4,500 transactions per second. Currently, the Ethereum network can only process a tiny fraction of that at 15 transactions per second.
While the crypto community awaits the upgrades that Ethereum 2.0 will bring, there still remains an imperative need to solve the network issues present on Ethereum’s network now. It is no surprise that investors in the industry are on a constant lookout for immediate solutions outside of those offered by Ethereum, but in a nascent market still experimenting with ways to optimize blockchain technology, a diversity in solutions offered will help to boost innovation and growth on Ethereum’s ecosystem overall.
You may also want to read: The Last Ethereum 2.0 Testnet is Finally Upon Us – August 4 Release Scheduled