Ecological fund strategy effective? Avalanche AVAX and LUNA hit all-time highs

The cryptocurrency market showed a general upward trend over the weekend, with projects that released ecosystem development funds and reward programs performing strongly. Avalanche once again hit a new all-time high, while Terra and Harmony are also close to their previous highs.

Avalanche AVAX Hits All-Time High

Prior reports highlighted bullish news about the Avalanche protocol, including the $180 million liquidity mining incentive program Avalanche Rush, the establishment of an Ethereum cross-chain bridge, and the increase in the total locked value of assets.

The token AVAX surged over 20% in the past 24 hours, surpassing yesterday's previous high to reach $64.9, setting a new all-time high before retracing to around $61 at the time of writing.

Terraform Labs Launches $150 Million Funding Program

The Korean blockchain Terra LUNA announced the launch of the $150 million Project Dawn initiative on 9/9, unlocking five million LUNA tokens for infrastructure improvements, including expanding technical team collaborations, exploring non-cloud verification nodes, and diversifying oracle services.

The official statement mentioned the potential continuous unlocking of LUNA for operational costs, committing to unlocking a maximum of 3 million LUNA per month. The price was around $42 at the time of writing, showing a 6.5% gap from the previous high set yesterday.

Harmony Allocates $300 Million for Ecosystem Development

Harmony ONE announced on 9/10 that it will provide $380 million in ecosystem development funds over the next four years for purposes such as:

• DAO construction
• Event rewards
• Project development
• Strategic partnerships
• Hackathons
• Investments

This move led to a significant increase in ONE's value, but it has yet to break the previous high of $0.224 on 3/29, currently at around $0.191 at the time of writing, about 16.8% below the previous high.

In terms of fund utilization, the liquidity mining incentive program of the Avalanche protocol provides the most direct assistance to the TVL locked within the ecosystem, while Harmony and Terra, despite appearing to be showering funds on projects, are essentially unlocking tokens held by the teams for ecosystem development.

However, for the official teams, a market willing to buy is excellent marketing, and for investors in a bullish market, news from project teams may simply be seen as good news.