Avalanche Secures $250M Funding Ahead of Network Upgrade
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GM. Layer 1 chains are surging again, with TRON's TRX and Avalanche's AVAX scoring double-digit gains, while Aptos, Sui, and Cardano added between 5% and 9% in the past 24 hours.
In other news, institutions are continuing to stockpile Bitcoin and Ethereum, with BlackRock now officially recommending up to a 2% crypto allocation for investors. Meanwhile, Texas and Vancouver are making strides in adding strategic BTC reserves to their holdings.
Here’s the full scoop on the latest crypto news heading into the weekend. 👇
Avalanche Secures $250M Funding Ahead of Network Upgrade
The Avalanche Foundation has raised $250 million through a locked sale of AVAX tokens, backed by over 40 venture capital firms, including Galaxy Digital, Dragonfly, and ParaFi Capital. This funding supports the upcoming Avalanche9,000 upgrade, which might reduce Layer 1 blockchain deployment costs by 99.9%.
The upgrade stimulates developers with $40 million in retroactive grants to stimulate network growth. Scheduled for early 2025, Avalanche9,000 is pivotal for the network’s evolution, with over 500 app-specific Layer 1s already in development.
The raise boosts Avalanche’s treasury to over $3 billion in AVAX tokens, setting it as a top contender in blockchain scalability. The AVAX token’s price has surged by 13% following the announcement, confirming optimism surrounding the new chapter in Avalanche's development.
Texas Proposes Bitcoin Strategic Reserve
Texas State Representative Giovanni Capriglione has introduced a bill to establish a Bitcoin strategic reserve, aiming to safeguard against inflation and bolster the state’s financial stability. The proposed program would hold Bitcoin in cold storage for a minimum of five years and prohibit transactions involving foreign entities or illegal activities.
Texas’ cheap electricity and pro-crypto policies have already attracted important Bitcoin mining operations. The reserve aligns with the state’s commitment to innovation and financial security, potentially setting a precedent for other states. The announcement follows President-elect Donald Trump’s support for Bitcoin, suggesting growing institutional and governmental adoption of the cryptocurrency.
Trump-Backed Crypto Project Increases Ethereum Holdings
World Liberty Financial, a crypto project supported by President-elect Donald Trump, has greatly increased its Ethereum reserves, purchasing $5 million worth of ETH. The project now holds over $50 million in ETH, accounting for the majority of its $73 million cryptocurrency portfolio. Transactions indicate the project is converting stablecoin profits from its ongoing WLFI token sale into ETH.
The holdings also include altcoins like AAVE and LINK, hinting at deeper engagement with decentralized finance. World Liberty Financial’s strategy suggests a belief in Ethereum as a superior reserve asset over traditional stablecoins. Despite falling short of its $300 million fundraising goal, the project’s activities underline its focus on integrating into the broader DeFi ecosystem.
BlackRock Recommends 2% BTC Allocation to Investors
BlackRock, the world’s largest asset manager with $11.5 trillion under management, has advised investors to allocate 1% to 2% of their portfolios to Bitcoin. This recommendation accompanies a report highlighting Bitcoin’s growing legitimacy following its record-breaking $100,000 price milestone and BlackRock’s IBIT Bitcoin ETF surpassing its gold ETF in assets under management.
The rising price of Bitcoin has been attributed to a crypto-friendly regulatory outlook under the incoming Trump administration. With Bitcoin ETFs gaining traction, BlackRock’s endorsement further cements the asset’s role in diversified investment strategies. Bitcoin’s current trading price of over $101,000 underscores its increasing institutional adoption.
Data of the Day
Babylon Chain, a middleware protocol securing Cosmos' chains with Bitcoin, has surpassed $3.6 billion in Bitcoin deposits. Over 36,100 BTC from nearly 88,000 unique depositors have been staked on the platform, with $1.2 billion deposited in just 48 hours.
The protocol leverages Bitcoin’s Proof-of-Work security to strengthen decentralized networks and Proof-of-Stake chains. Babylon’s marketplace connects Bitcoin holders with networks seeking to strengthen security, providing rewards in return.
More Breaking News
- Coinbase plans to delist Tether's USDT and other non-MiCA-compliant stablecoins in Europe while continuing support for USDC and EURC.
- Vancouver City Council approves a study to integrate Bitcoin into its financial strategies despite regulatory and environmental concerns.
- Kraken's Australian operator, Bit Trade, is fined $5.1 million for non-compliance with local regulations, including offering unlicensed credit facilities.
- Ukraine announces plans to legalize cryptocurrencies by 2025 under strict regulations, applying standard taxation rules without incentives.
- Electric Capital's annual report highlights Solana as the biggest draw for new developers in 2024, surpassing Ethereum in onboarding efforts.
- Frax Finance develops an AI-focused blockchain tech stack called AIVM to enable autonomous, tokenized AI agents on its layer 2 rollup, Fraxtal.
- Grayscale launches investment funds for Lido DAO (LDO) and Optimism (OP) tokens, expanding its offerings in DeFi and Ethereum.
For the latest updates on digital asset markets, follow us on X @Datawalletcom.
Written by
Jed Barker
Editor-in-Chief
Jed, a digital asset analyst since 2015, founded Datawallet to simplify crypto and decentralized finance. His background includes research roles in leading publications and a venture firm, reflecting his commitment to making complex financial concepts accessible.
