Aave’s Parent Firm Avara Seeks $50M for Lens Protocol, Token Plunges 8%

UTC by Anisha Pandey · 2 min read
Aave’s Parent Firm Avara Seeks $50M for Lens Protocol, Token Plunges 8%
Photo: Web Summit / Flickr

The native token of Aave (AAVE) has experienced an 8% decline in the past 24 hours, despite the fundraising efforts disclosed by the CEO of the parent company.

Stani Kulechov, the founder and CEO of Avara, is currently in discussions with US venture capital firms to secure an additional $50 million in funding for Lens Protocol.

As per individuals with knowledge of the event, the funding would provide the protocol with a valuation of more than $500 million. The figures were neither verified nor denied by the CEO of Avara. Nevertheless, the decision is timely, as Lens Protocol is currently striving to establish a stronghold in the competitive Web3 social media platform market.

Kulechov clarified in an interview with DL News that the primary objective is not to introduce a new token but rather to prepare for the debut of Lens Network which has been created using ZKSync.

Interestingly, ZKSync will provide the robust infrastructure required for the next phase of Lens Protocol’s development. Aside from Lens Protocol Avara is also responsible for overseeing other projects like the stablecoin GHO, the crypto wallet Family, and the lending protocol Aave.

Avara’s Lens Protocol successfully raised $15 million in 2023. However, the valuation remained hidden behind the curtains. On the other hand, Farcaster, Lens Protocol’s biggest competitor, also secured $150 million at a $1 billion valuation just four weeks ago. The round was led by Paradigm but a16z’s crypto subsidiary and other venture firms also took part.

Farcaster and Lens Protocol both strive to provide users with the ability to manage their digital content, thereby empowering them. The focus is on improving privacy and security along with the creation of new opportunities for monetizing social media activity. Dune Analytics data suggests that approximately 70% of users on both platforms have fewer than 50 followers, indicating that there is still substantial potential for user engagement and growth.

AAVE Token Plunges

The native token of Aave (AAVE) has experienced an 8% decline in the past 24 hours, despite the fundraising efforts disclosed by the CEO of Avara.

The altcoin’s trading volume increased by 61.38% to $132 million, with a market capitalization of $1.18 billion. It is important to note that AAVE has experienced a 9.91% decline in the past week, followed by a 10% decline in the last 30 days. Further, the cryptocurrency has experienced a 55.52% increase in value since June 2023 and is presently ranked 63rd in terms of market capitalization.

DefiLlama data confirms that the total value locked (TVL) in the Aave protocol stands at $12 billion while the all-time high TVL was witnessed in October 2021 at $19.13 billion.

Altcoin News, Cryptocurrency News, News
Related Articles