VanEck to Fund Real-Use Web3 Projects on Avalanche Network

• VanEck is launching a fund to help Avalanche-based Web3 projects grow and expand.
• The fund will invest in blockchain solutions like finance, gaming, and digital assets.
• Avalanche’s DeFi ecosystem hits $1.56B TVL with strong user activity and $221M daily volume.

VanEck, a global asset management firm, has announced the launch of the VanEck PurposeBuilt Fund, set for June 2025. The fund will exclusively target the Avalanche blockchain ecosystem, investing in real-world asset (RWA) projects and tokenized Web3 ventures. Accessible only to accredited investors, the fund aims to drive capital into sustainable blockchain solutions across industries like gaming, financial services, artificial intelligence, and payments.

The initiative is managed by the team behind VanEck’s Digital Assets Alpha Fund (DAAF), which currently oversees over $100 million in assets. Furthermore, according to VanEck, idle capital from the fund will be deployed into Avalanche-native RWAs, such as tokenized money market instruments, to maintain ecosystem liquidity and accelerate adoption.

A Strategic Pivot Toward Real Utility

VanEck’s PurposeBuilt Fund arrives at a time of market maturation, shifting from speculation to utility-focused crypto ventures. Portfolio manager Pranav Kanade stated, “The next wave of value in crypto will come from real businesses, not more infrastructure.” 

Moreover, Avalanche’s subnet architecture allows developers to deploy Ethereum-style smart contracts in a more regulated, scalable environment. As a result, institutional-grade solutions such as Solv Protocol’s yield-bearing Bitcoin are finding a foothold on the Avalanche network. Introduced on May 16, the token aims to attract yield-seeking institutions looking for compliant Web3 solutions.

Besides focusing on RWAs, the fund also aims to address broader issues in crypto markets. Many honest blockchain business founders find it challenging to capture funding while speculative activity dominates the market. 

Ecosystem Strength Backed by Strong Metrics

Avalanche’s DeFi ecosystem has gained renewed momentum. According to DeFiLlama, the Total Value Locked reached $1.564 billion as of May 22, 2025, a 4.66% daily increase. Daily perpetuals trading volume stands at $221.38 million, while decentralized exchanges processed $153.73 million in volume.

Besides, there were 45,134 active addresses on Avalanche, reflecting strong involvement from users. At press time, the AVAX token is trading at $24.65 with a total market cap of $10.29 billion. In addition, the stablecoins running on the network earned a total market cap of $1.794 billion. 

Related: VanEck’s Avalanche ETF Registration Could Drive AVAX Growth

The PurposeBuilt Fund highlights a new investment model focused on transparent utility and institutional growth. According to John Nahas, Chief Business Officer at Ava Labs, “We’re seeing a shift away from speculative hype toward real utility and sustainable token economies.” This transition is expected to attract more serious capital into Avalanche.

VanEck’s fund is created to help credible founders and support their projects grow while staying on the right path. By partnering capital with teams focused on its mission, the fund addresses an important need in today’s Web3 field.

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