Avalanche recorded a sharp rise in tokenized real-world assets in the fourth quarter of 2025, even as the network’s native token continued to underperform the broader crypto market. Data showed that the total value of tokenized assets on the Avalanche blockchain surged nearly tenfold over the year to exceed $1.3 billion, with Q4 alone delivering growth of almost 69 percent. The expansion reflects rising institutional adoption of blockchain-based financial products, particularly in tokenized funds, loans, and indices. This momentum has positioned Avalanche as one of the more active layer-one networks for real-world asset experimentation, highlighting a growing divergence between onchain utility and token price performance. While infrastructure usage accelerated, the AVAX token fell sharply during the same period, underscoring a disconnect that has become increasingly common across parts of the digital asset market.
Despite the growth in network activity, the price of AVAX declined about 59 percent during the fourth quarter, sliding further in early 2026 and remaining well below its all-time high. In contrast, onchain metrics pointed to expanding usage. The launch of BlackRock’s $500 million USD Institutional Digital Liquidity Fund on Avalanche in November marked a notable endorsement from traditional finance. Native decentralized finance activity also increased, with the value locked in Avalanche-based DeFi rising more than 34 percent in Q4 and average daily transactions jumping to over two million. Partnerships with established financial services firms helped drive this activity, as tokenized lending and settlement use cases gained traction among institutions exploring blockchain rails.
Broader integration with traditional finance continued as large firms experimented with tokenized products on Avalanche. A collaboration involving S&P Dow Jones Indices and Dinari introduced a digital markets index built on Avalanche infrastructure, while stablecoin usage evolved with USDT overtaking USDC as the dominant token on the network. Although total stablecoin supply remained largely flat, the mix shifted toward assets favored for institutional settlement. Analysts say the trend illustrates how infrastructure adoption can grow independently of token price cycles. For Avalanche, the surge in tokenization and institutional partnerships suggests increasing relevance as a financial platform, even as market sentiment toward its native asset remains subdued.
