Avalanche Gains Institutional Momentum as AVAX Struggles to Keep Pace

Avalanche’s native token, AVAX, has seen a recent decline, retreating from its $25 peak, while network activity has surged, signaling growing adoption and usage of the blockchain. As of late August 2025, AVAX traded at $23.34, representing a 1.91% drop from the previous day. Despite the price correction, the blockchain's 24-hour trading volume stood at $728.75 million, and its total value locked (TVL) exceeded $9.89 billion, maintaining its position as the 18th most popular cryptocurrency by market capitalization. The recent price dip has underperformed compared to other Layer 1 assets like BERA and XRP, which have seen better performance amid broader market shifts.

One of the most significant developments for Avalanche in recent months has been the expansion of real-world asset (RWA) tokenization. SkyBridge Capital, a prominent investment firm founded by Anthony Scaramucci, announced plans to tokenize $300 million of its hedge funds on the Avalanche network. The initiative, executed in partnership with Tokeny and Apex Group, leverages the ERC-3643 token standard to digitize SkyBridge’s Digital Macro Master Fund Ltd and Legion Strategies Ltd. This move represents a major step in institutional adoption of blockchain technology, as traditional asset managers increasingly seek to harness the benefits of tokenization, including improved transparency, faster settlement times, and increased accessibility for investors. Avalanche’s selection for this initiative was attributed to its institutional-grade architecture, high transaction speed, and compatibility with Ethereum Virtual Machine (EVM), which facilitate seamless integration of RWA offerings.

The RWA tokenization market has experienced rapid growth in 2025, expanding from $15.8 billion in December 2024 to over $26.4 billion by August 2025, a 64.7% increase. This expansion has been driven by demand for tokenized private credit and U.S. Treasuries, which together account for 86.5% of the total RWA market. Avalanche’s RWA segment currently holds $188 million in tokenized assets, placing it among the top 12 blockchains in this emerging sector. The growth of RWA tokenization reflects a broader trend as traditional financial institutions explore blockchain-based solutions to modernize their infrastructure and expand market access.

Network activity on Avalanche has also demonstrated strong performance, with daily transactions and active addresses increasing by 169.9% and 210.4% quarter-over-quarter, respectively. This growth has been fueled by high-profile developments such as the launch of MapleStory N and the FIFA Blockchain. Additionally, Avalanche has introduced Suzaku, a middleware protocol designed to facilitate the secure and progressive decentralization of Layer 1 blockchains on its network. Suzaku’s dual-staking design enables emerging blockchains to bootstrap economic security using both native tokens and blue-chip assets like AVAX, further solidifying Avalanche’s position as a foundational platform for blockchain innovation.

Despite the surge in on-chain activity and institutional adoption, AVAX’s price performance has lagged behind broader crypto market trends. Yearly growth for AVAX stands at 5.05%, significantly below the 109% average for other Layer 1 assets. This underperformance has been attributed to a combination of factors, including a 44.75% drop in AVAX’s price relative to other cryptocurrencies and a decline in trading volume. While the 24-hour trading volume for AVAX fell, the broader crypto market saw a 26% increase in trading activity during the same period, highlighting the token’s relative volatility. Analysts attribute AVAX’s struggles to macroeconomic pressures, competition from emerging blockchains, and market uncertainty around token unlocks, including a $42 million AVAX unlock scheduled in the coming months that could further weigh on the token’s price.

The Avalanche ecosystem, however, remains active and continues to attract innovation and investment. With a capped supply of 716 million AVAX tokens and ongoing network upgrades, the platform has positioned itself as a scalable and versatile blockchain for decentralized applications, DeFi protocols, and RWA tokenization. As the blockchain industry continues to evolve, Avalanche’s ability to attract institutional players like SkyBridge and facilitate high-impact projects will be critical in determining its long-term trajectory and the value of AVAX in the global crypto market.

Source:

[1] Avalanche Price, AVAX Price, Live Charts, and Marketcap (https://www.coinbase.com/price/avalanche)

[2] Solana DeFi Total Value Locked Hits $8 Billion Record (https://www.mitrade.com/insights/news/live-news/article-3-1049543-20250819)

[3] Scaramucci's SkyBridge Capital to Tokenize $300M on ... (https://cointelegraph.com/news/scaramucci-skybridge-capital-tokenize-avalanche)

[4] SkyBridge Capital Partners with Tokeny to Tokenize $300 ... (https://www.avax.network/about/blog/skybridge-capital-to-tokenize-300m-on-avalanche)

[5] Scaramucci's Skybridge Capital to Tokenize $300M in ... (https://www.coindesk.com/business/2025/08/19/scaramucci-s-skybridge-capital-to-tokenize-usd300m-in-hedge-funds-on-avalanche)