AVAX Rises 5% on Institutional RWA Demand and Network Upgrades
Avalanche's native token, AVAX, surged approximately 5% in the past 24 hours, outpacing much of the cryptocurrency market. This rally was driven by growing institutional interest in real-world asset (RWA) tokenization on the Avalanche network. AVAX traded around $11.45, with a 24-hour volume exceeding $560 million and a market capitalization nearing $5.1 billion. The token has also rebounded sharply from its September lows, bolstered by increased institutional focus on Avalanche as a platform for tokenized funds, securities, and settlement services.
The recent upward movement stems from several institutional developments rather than a single catalyst. A key driver is Lynq, an institutional settlement network built on Avalanche technology, which now provides access to Goldman Sachs’ Financial Square Treasury Instruments Fund. While the fund itself hasn't been tokenized, eligible institutions can utilize Avalanche-based infrastructure for seamless transactions, further integrating traditional finance with blockchain.
Avalanche has also seen expanded institutional access to AVAX. VanEck recently launched the first U.S.-listed spot Avalanche ETF, and the Avalanche Treasury was established as another public-market vehicle for ecosystem exposure. Additionally, the network underwent a significant technical upgrade with the activation of Helicon on the mainnet on September 22, introducing continuous execution, staking improvements, and a flexible gas-fee system. A subsequent Helicon.1 release on October 1 further enhanced snapshot performance.
The institutional narrative extends beyond funds, with Avalanche-related vehicles previously attracting substantial investments, including a $675 million transaction aimed at building a large institutional AVAX platform. These developments highlight Avalanche's growing role in the tokenization of real-world assets and its potential to become critical infrastructure for applications requiring high-speed and low-cost transactions.