One of the best performing cryptocurrency assets right now is the layer 1 blockchain Avalanche (AVAX). Tokens are outperforming big cap stocks for another day, but what’s driving the momentum?
AVAX price has risen by almost 10% in the last 12 hours, bringing the token back to the $23 price level. This outpaced the gains of other altcoins and the overall cryptocurrency market, which rose about 2.3% on the day.
Avalanche Hype Due to RWA Tokenization
There is currently a lot of talk surrounding layer 1 high throughput blockchains, which has seen the price of AVAX rise by a whopping 80% in the past two weeks.
Additionally, a series of recent announcements, partnerships with major institutions, and the surge in GameFi and NFTs have driven AVAX up over 140% over the past month.
One of the main stories is Avalanche’s shift to real-world asset tokenization, with the goal of becoming the standard chain.
It recently announced partnerships with JP Morgan and Citi. Both are experimenting with RWA tokenization using Avalanche technology.
DeFi researcher ‘Emperor Osmo’ said. this,
“The resurgence of interest will trickle down across the ecosystem for both retailers and institutions looking for exposure.”
Read more: How to Buy Avalanche (AVAX) with Credit Card: Step-by-Step Guide
RWA tokenization is attracting attention as the next innovation in the cryptocurrency field. This essentially involves placing traditional assets such as gold, commodities, government bonds, and real estate on the blockchain.
Earlier this year, private asset management firm Bernstein estimated that about 2% of the global money supply, or about $3 trillion, could be tokenized over the next five years.
Big banks clearly want a piece of the tokenization pie and could turn to existing technologies like Avalanche rather than building a system from scratch.
Last July, the Avalanche Foundation announced the launch of Avalanche Vista, a $50 million initiative to invest in RWA tokenization.
Moreover, on November 20, Blockworks researcher Dan Smith reported that Avalanche has its own ordinal standard called ASC-20.
Over the past day, ASC-20 mining has surged, accounting for 96% of transactions issuing over 170,000 wallets.
Avalanche AVAX Price Outlook
The positive momentum pushed AVAX price to an intraday high of $23.18 during Monday morning’s Asian trading session.
Continuing last week’s gains, it is currently trading at $22.58, up 7% on the day.
AVAX hit a yearly high of just over $24 on November 17 and remains up nearly 25% over the past week.
However, the asset is still down 84% from its all-time high of $145 two years ago, so there is plenty of room for further upside.
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