Avalanche Foundation Targets $1 Billion for AVAX Treasury

Bittime - The Avalanche Foundation is in the spotlight after announcing a major plan worth$1 billion for the AVAX treasury initiative. This ambitious strategy is believed to strengthen the Avalanche ecosystem, attract institutional investment, and potentially push the AVAX price toward its target of $55.

With a mechanism similar to Bitcoin's corporate treasury strategy from a few years ago, Avalanche is now trying to position itself as a major player in the global adoption of digital finance.

Avalanche's $1 Billion Treasury Strategy

Initiative Avalanche's $1 billion Treasury designed to create two treasury entities in the United States.

Through this step, the Avalanche Foundation plans to distribute millions of AVAX tokens, some of which were sold at a discount to institutional investors.

Some big names likeHivemind Capital And Dragonfly Capitalhave been involved in the initial deals. One of the deals even targeted$500 million through private placement, while the remainder will be raised through a special purpose acquisition vehicle (SPAC). This model underscores Avalanche's commitment to gaining the trust of global financial institutions.

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Impact on AVAX Supply & Demand

One of the main reasons behind this strategy is AVAX supply cuts on the open market. 

With large purchases by treasury companies, the amount of AVAX circulating on exchanges will decrease. This mechanism is similar to “hoarding strategy” which several large companies have done with Bitcoin.

• Total supply AVAXlimited to only 720 million tokens.
• There are currently around 422 million tokens in circulation, so any institutional accumulation could have a significant impact on the price.
• With $1 billion, it is estimated that it will be absorbed by around 34.7 million AVAX (8% of circulating supply).

The combination of decrease in supply And increasing institutional demandcould create long-term bullish momentum.

Read Also: Avalanche (AVAX) Price Today

AVAX Price Outlook: Heading for $55?

Technically, AVAX price has emerged from a long accumulation phase and is currently trading in the range $29–30. This breakout opens up the opportunity for a gradual increase towards the main resistance level at$35, $45, up to $55.

In addition to technical factors, positive sentiment from Avalanche's $1 billion treasury strategy became an important catalyst.

If this plan is successfully realized, the price of AVAX has the potential to experience a significant rally, even approaching its 2021 high above $100 in the medium term.

Read Also: How to Buy Avalanche (AVAX)

Avalanche and Institutional Investment

By partnering with large institutions, Avalanche is asserting its position as a blockchain that is not only focused on DeFi and NFTs, but is also ready to compete in the digital space.traditional finance (TradFi).

Comparison with Solana shows that Avalanche is more structured in its build-donor treasury. 

If this strategy is successful,Avalanche financial institutions will open the door wider for global corporate participation, both through asset tokenization and blockchain-based investment products.

Conclusion

Plan Avalanche Foundation $1B Treasury is a strategic step to strengthen the AVAX ecosystem and affirm Avalanche's role in the global digital asset industry.

The positive impact can be felt in the form of increased institutional demand, reduced market supply, and projections of significant price increases.

With the support of major investors and ambitious targets, the outlook for AVAX looks increasingly bullish. 

If these technical and fundamental trends continue, the price target could be$55no longer just speculation, but a potential that is getting closer.

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FAQ

What is Avalanche Treasury?

The Avalanche Treasury is a $1 billion initiative by the Avalanche Foundation to purchase and manage AVAX tokens, with the goal of strengthening the ecosystem and attracting institutional investment.

How will Avalanche's $1 billion Treasury impact the price of AVAX?

With AVAX's limited supply, large institutional purchases could reduce the number of tokens in circulation and increase demand, driving the price up.

Who are the institutions involved in the Avalanche deal?

Several big names such as Hivemind Capital and Dragonfly Capital are said to have participated in the initial deal, with a total funding target of $1 billion.

Can AVAX reach the $55 target?

Technically and fundamentally, the $55 target is very possible if the accumulation trend continues and Avalanche's treasury plans are realized as planned.

How is this Avalanche initiative different from other blockchain projects?

Avalanche adopts a treasury model similar to large TradFi companies, making it attractive to institutions. This differs from simply focusing on DeFi or NFTs.