Avalanche (AVAX) has experienced a remarkable surge of over 22% in the last seven days, attributed to its partnerships with major financial institutions to explore real-world asset tokenization.
The native token of the Avalanche network has demonstrated significant activity in recent weeks, positioning itself as one of the top gainers during the market’s rebound. According to data from CoinMarketCap, the asset has gained 23.30% in the past week.
As of the current press time, the token is trading at $22.44, showing a 1.47% increase after a weekend surge of nearly 10%, briefly reaching around $23.
Long-term gains after poor 2022
Avalanche (AVAX) has demonstrated remarkable gains on its layer-1 blockchain, surpassing the performance of other network tokens in recent months. Its one-month growth rate stands at over 140%. This year marks a significant turnaround for AVAX after a relatively slow 2022 in the market, characterized by the decline of major firms like FTX and Terra.
Notably, Avalanche wasn’t the only blockchain with limited growth in the previous year. Market leaders Bitcoin (BTC) and Ethereum (ETH) experienced over 55% losses in 2022 but have since made substantial rebounds in the current year.
AVAX has surged by 75.05% since November 2022, following the FTX implosion, and boasts a year-to-date growth of 107.18%. This growth is attributed to increased activity on the platform and recent partnerships aimed at tokenization.
Big banks explore real-world asset tokenization
In the current year, institutional giants have initiated various tests related to tokenization, signaling a growing adoption trend as their interest in blockchain-based products intensifies.
Republic Crypto recently announced its plans to initiate revenue-sharing tokenization on the Avalanche network. This involves offering investors stablecoin dividends for owning a portion of the portfolio.
Additionally, JP Morgan and Apollo disclosed tests on a “proof-of-concept” designed to assist asset managers in participating in the tokenization trend across multiple blockchains. Many fund managers, aligning with financial institutions, are exploring the deployment of traditional assets on the blockchain, simplifying management through ongoing interoperability tests.
The aim is to create solutions that enhance efficiency and provide better outcomes for asset and wealth managers and investors by enabling personalized, highly scalable portfolios across various asset classes and regardless of where those assets are managed and recorded.
According to DeFi analyst @wacy_time1 on X (formerly Twitter), the recent tokenization efforts by Bank of America, Citi, and JP Morgan have contributed to AVAX’s impressive rise of over 150%, reaching a yearly all-time high of $24.
Avalanche has strategically positioned itself to emerge as a prominent player in the tokenization landscape by investing $50 million in Avalanche Vista, a platform designed to facilitate real-world tokenization.
This move comes amid predictions by wealth manager Bernstein that the tokenization space could become a trillion-dollar industry within the next five years. Traditional financial players are showing a keen interest in deploying assets like gold, real estate, and commodities onto the blockchain, with potential experiments extending into areas like Artificial Intelligence (AI).