The network’s native token, AVAX, has witnessed significant activity in recent weeks, emerging as one of the top gainers amidst the market rebound. According to data from CoinMarketCap, the asset has experienced a 23.30% increase over the past week. Currently trading at $22.44, it has climbed by 1.47% after a surge of nearly 10% over the weekend, reaching a temporary high of around $23.
Outpacing Other Tokens
AVAX’s growth on the layer-1 blockchain has surpassed that of other network tokens in the market, with a one-month growth of over 140%. The year 2022 was challenging for major firms like FTX and Terra, resulting in a slow period for AVAX. However, the token has experienced a remarkable turnaround this year, moving up by 75.05% since November 2022, shortly after the FTX implosion. Its year-to-date growth stands at an impressive 107.18%, driven by increased activity and recent partnerships focused on tokenization.
Institutional Adoption of Tokenization
This year, institutional giants have initiated several tests on tokenization, indicating a growing appetite for blockchain-based products. Republic Crypto recently announced its plans to introduce revenue sharing tokenization on the Avalanche network, offering investors stablecoin dividends tied to the portfolio’s performance. Likewise, JP Morgan and Apollo have carried out tests on “proof-of-concept” to assist asset managers in joining the tokenization trend across multiple blockchains. Financial institutions and fund managers are increasingly exploring the deployment of traditional assets on the blockchain, facilitated by ongoing interoperability tests. Notably, the tokenization efforts of Bank of America, Citi, and JP Morgan have resulted in AVAX rising over 150%, reaching a yearly all-time high of $24, as highlighted by DeFi analyst @wacy_time1 on X (formerly Twitter).
Avalanche has positioned itself as a leading player in tokenization by investing $50 million in Avalanche Vista, a platform dedicated to facilitating real-world tokenization. With wealth manager Bernstein predicting the tokenization space to reach trillions of dollars within the next five years, traditional players are keen on leveraging the blockchain for assets such as gold, real estate, and commodities. Additionally, exploratory ventures involving Artificial Intelligence (AI) are also being considered.
