Avalanche Foundation Completes Buyback of 1.97M AVAX Tokens From Defunct Luna Foundation Guard

The buyback, which was initially valued at $45.5 million, now reflects a market value of approximately $53 million, thanks to AVAX's recent price increase.

The Avalanche Foundation has completed its planned buyback of 1.97 million AVAX tokens from the now-defunct Luna Foundation Guard (LFG). These tokens were originally acquired by LFG as part of its initiative to support the Terra ecosystem before its collapse.

The buyback, which was initially valued at $45.5 million at the time of the announcement, now reflects a market value of approximately $53 million, thanks to AVAX’s recent price increase.

With AVAX trading at around $27 at the time of writing, the buyback’s value has appreciated by about $7.5 million, according to on-chain statistics. This price uptick allowed the Avalanche Foundation to maximize its investment return while reclaiming AVAX from the defunct Terra initiative.

The move also highlights the foundation's strategy to bolster its token reserves and support the Avalanche ecosystem during a period of market recovery.

This buyback signifies more than just a financial transaction; it underscores Avalanche's commitment to the stability and growth of its ecosystem.

By reclaiming AVAX tokens that were once part of the Terra support mechanism, the foundation has not only reinforced its financial assets but also sent a positive signal to its community regarding its dedication to maintaining a strong market presence.

The timing of the buyback, amidst a gradual AVAX price rally, showcases confidence in the network's long-term prospects.

The recent market price chart illustrates AVAX's steady climb from the $23 range in early November to nearly $28 today. This upward momentum reflects renewed investor interest and optimism surrounding Avalanche's ecosystem developments, including the repurchase from LFG.

With the crypto market in a state of cautious recovery, such positive price action could attract further investor attention, particularly as AVAX consolidates its value at higher levels.

As the Avalanche Foundation strengthens its AVAX holdings, this buyback may bolster investor confidence and support token liquidity in the market.

By absorbing previously circulating AVAX from LFG, the foundation could exert a stabilizing influence on the token's price, benefiting holders and ecosystem participants.

This move reaffirms the foundation's proactive role in maintaining AVAX's market health and its broader mission of driving adoption and development within the Avalanche network.

With AVAX's price at around $27 and investor sentiment appearing positive, Avalanche's recent buyback could mark a pivotal moment, reflecting both market resilience and the foundation's strategic foresight amid evolving market conditions.