Avalanche (AVAX) reached its highest price since August 2022, exceeding $24 today. Moreover, the layer-1 blockchain token is currently the market’s best-performing token, and almost all other high-cap coins are losing money.
AVAX has doubled in price over the past two weeks and is up a whopping 166% in the past month.
RWA Tokenization Stimulates Markets
On November 16, DeFi researcher ‘AlΞx Wacy’ offered some insights into what is driving AVAX’s performance presented.
Major banks are actively exploring the tokenization of real-world assets (RWA). He said JP Morgan is tokenizing funds for blockchain integration, Citi is testing blockchain for forex transactions, and Bank of America is bullish on asset tokenization.
These all use Avalanche technology and Subnets for their blockchain solutions.
JP Morgan is tokenizing funds for blockchain integration.
NEWS CONTINUES BELOWCiti is testing blockchain for FX trades.
Bank of America predicts asset tokenization.
Avalanche Subnets becomes the choice of institutional investors.$AVAX has risen +150% in 30 days, reached this year’s ATH at $24.… https://t.co/NBoSkwrGPV pic.twitter.com/y2vu8psVfT
— AlΞx Wacy 🌐 (@wacy_time1) November 16, 2023
RWA tokenization involves placing traditional assets such as gold, commodities, treasury bonds, and real estate on the blockchain. It is predicted that this will become a multi-trillion dollar industry, and big banks want a piece of it.
Earlier this year, private wealth management firm Bernstein estimated that roughly 2% of the global money supply, or about $3 trillion, could be tokenized in the next five years.
Citi has tested the use of blockchain infrastructure to price and execute simulated FX trades on Avalanche Evergreen Subnets.
This Proof of Concept from @Citi is part of Project Guardian, a collaboration by the Monetary Authority of Singapore (MAS) & the financial industry. 🧵👇 pic.twitter.com/dVnmfG562r
— Avalanche 🔺 (@avax) November 16, 2023
A highly efficient blockchain is required to process transactions, and Avalanche has emerged as the network of choice as its ecosystem grows.
Moreover, the Avalanche Foundation announced in July the launch of Avalanche Vista, a $50 million initiative to invest in RWA tokenization.
AVAX Rises to 2023 High
AVAX prices hit their highest level in more than a year during the Asian trading session on Friday morning.
altcoinAt press time, it reached $24.41 before falling slightly to $23.60. Moreover, AVAX has surged a whopping 78% over the past week, dwarfing the moves of Bitcoin, which is down 1.3% over the same period.
Despite these massive gains, AVAX is still down 83.5% from its November 2021 all-time high of $145, meaning there’s still plenty of room for further gains.
Avalanche DeFi’s total value locked is approximately $665 million, with leading projects Benqi and Trader Joe’s posting solid gains over the past week.
Crypto While its markets have cooled off from its recent rally, momentum remains with Avalanche, which continues to outperform other altcoins.