The Avalanche network [AVAX] attracted $131.2 million in tokenized stocks over the past week, significantly outpacing other platforms in the market. The main contribution to this increase was made by Securitize, which secured $132 million in market capitalization. This concentration of funds indicates that demand is focused on a specific tokenized stock product rather than a broad demand for stocks based on Avalanche. For comparison, Solana [SOL] attracted $16 million, while X Layer collected $8.5 million, indicating that there is some activity outside of Avalanche as well. At the same time, the Ethereum [ETH] network lost about $5.6 million. The total market size of tokenized stocks is approximately $3.6 billion. A significant increase in the price of AVAX could strengthen its position in the field of institutional tokenization, but if most of the investment comes from one product direction, it may limit future growth.
Additionally, Avalanche is beginning to serve as an accessible platform for institutions for cash management settlements. Goldman Sachs announced the migration of its $105 billion FTIXX Treasury fund to Lynq, allowing firms to use their capital between transactions while earning yields on treasury bonds. This approach provides an opportunity for balance between traditional money markets through Lynq and tZero Securities. However, Avalanche faces the challenge of conversion among a growing institutional base. Although the distributed values of real-world assets (RWA) increased by 8.4% from $1.67 billion to $1.80 billion over thirty days, RWA transfer volumes decreased by 75% to $81 million. This may indicate that a significant portion of the increased value remains inactive after issuance.
The contrast with stablecoins shows a deeper transactional use of Avalanche in payments than in tokenized assets. To expand institutional acceptability, new product solutions in the field of treasury and equity funds should provoke regular transfers, not just increase the volume of assets under management. Until this happens, Avalanche's growth remains characterized as significant in assets but insufficient in activity.
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