Avalanche (AVAX) has surged to its highest price since August 2022, topping $24 today. Furthermore, the layer-1 blockchain token is the market’s top performer at the moment with nearly every other high-cap coin taking losses.
AVAX has doubled in price over the past fortnight and made a whopping 166% over the last month, but what is driving momentum?
RWA Tokenization Moving Markets
On Nov. 16, DeFi researcher ‘AlΞx Wacy’ offered some insights as to what was driving the performance of AVAX.
Major banks are actively researching real-world asset (RWA) tokenization. JP Morgan is tokenizing funds for blockchain integration, Citi is testing blockchain for forex trades, and Bank of America is bullish on asset tokenization, he said.
All of them are using Avalanche technology and Subnets for their blockchain solutions.
JP Morgan is tokenizing funds for blockchain integration.
Citi is testing blockchain for FX trades.
Bank of America predicts asset tokenization.
— AlΞx Wacy 🌐 (@wacy_time1) November 16, 2023
RWA tokenization involves putting traditional assets such as gold, commodities, treasuries, and real estate on the blockchain. It has been predicted to become a multi-trillion-dollar industry, and the big banks want a slice of it.
Earlier this year, private wealth management firm Bernstein estimated that roughly 2% of the global money supply, or around $3 trillion, could be tokenized over the next five years.
Citi has tested the use of blockchain infrastructure to price and execute simulated FX trades on Avalanche Evergreen Subnets.
— Avalanche 🔺 (@avax) November 16, 2023
A high-throughput blockchain is required to process transactions, and Avalanche has emerged as the network of choice as its ecosystem grows.
Moreover, the Avalanche Foundation announced the launch of Avalanche Vista, a $50 million initiative to invest in RWA tokenization, in July.
AVAX Surges to 2023 High
AVAX prices hit their highest level for more than a year during the Friday morning Asian trading session.
The token topped out at $24.41 before retreating slightly to $23.60 at the time of writing. Moreover, AVAX has made a whopping 78% over the past week, dwarfing Bitcoin’s movements, which have dipped 1.3% over the same period.
Despite those monumental gains, AVAX is still down 83.5% from its November 2021 all-time high of $145, so there is still plenty of room for more gains.
Avalanche DeFi’s total value locked is around $665 million, with leading projects Benqi and Trader Joe’s seeing solid gains over the past week.
As crypto markets cool from their recent rally, momentum has remained with Avalanche, which continues to outperform its brethren.