Avalanche launches $200 million fund to lure top cryptocurrency developers

The Avalanche Foundation has announced a fund called “Blizzard” offering over $200 million in rewards to developers building on the Avalanche (AVAX) network.

The fund will provide liquidity to early-stage projects innovating decentralized finance (DeFi) applications, non-fungible tokens (NFTs) and other products on Avalanche.

Avalanche is a proof-of-stake network launched in September 2020. The network features Ethereum Virtual Machine (EVM) compatibility, allowing developers to port decentralized applications from Ethereum. More than 320 projects are currently building on the network, including top stablecoin issuer Tether, popular DEX SushiSwap, and oracle providers Chainlink and The Graph.

Contributors to Blizzard include the Avalanche Foundation, Ava Labs, Polychain Capital, Three Arrows Capital, Dragonfly Capital and CMS Holdings, according to a Nov. 1 statement.

Blizzard will prioritize four key growth areas of the Avalanche ecosystem - DeFi, enterprise applications, NFTs, and cultural applications. The funds will be used for equity investments, token purchases, partnerships, technology and business development.

Builders in the ecosystem will also receive ongoing support, said John Wu, President of Ava Labs:

"Blizzard's entry into the Avalanche community comes at a critical time, and the influx of users and activity demands constant innovation with new applications and use cases on the platform."

Avalanche is the sixth largest proof-of-stake network with a $14 billion staked market cap and 56% of its supply is currently staked.

According to DefiLlama, Avalanche is the fifth largest network with a total value locked (TVL) of $8.5 billion, with its TVL surging 2,624% from $312 million in August.

AVAX is down about 18 percent from its all-time high of $79.31 set on Sept. 23, and is trading at $64.80 as of this writing, according to data from CoinGecko.

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