Avalanche (AVAX) led by RWA adoption and ordinary mining

One of the best performing crypto assets at the moment is the layer-1 blockchain Avalanche (AVAX). The brand is outperforming its larger-cap brethren for another day, but what's driving the momentum?

AVAX prices have made about 10% over the last 12 hours or so, bringing the token back to the $23 price level. It outpaced the gains of other altcoins and the overall crypto market, which rose 2.3% on the day.

Avalanche hype driven by RWA Tokenization

There's a lot of hype around the Layer-1 high-throughput blockchain right now, which is why AVAX's price has surged a staggering 80% in the past two weeks.

Moreover, a series of recent announcements, partnerships with major institutions, and surges in GameFi and NFTs pushed AVAX over 140% last month.

One of the main narratives is that Avalanche is a real-world asset token pillar with the goal of becoming a standard chain.

In recent days, it has announced partnerships with JP Morgan and Citi. Both are experimenting with RWA tokenization using Avalanche technology.

Diffie researcher ‘Emperor Osmo' said this

“The resurgence of excitement will trickle down the ecosystem from retailers and institutions seeking retail exposure.”

Read more: How to buy Avalanche (AVAX) with a credit card: a step-by-step guide

RWA token is considered as the next big thing in crypto. It basically involves putting traditional assets like gold, commodities, treasuries and real estate on the blockchain.

Earlier this year, private wealth management firm Bernstein estimated that roughly 2 percent of the world's money supply, or about $3 trillion, could be tokenized over the next five years.

The big banks want a piece of that tokenization pie, and instead of building systems from scratch, they can turn to existing technologies, such as Avalanche.

In July, the Avalanche Foundation announced the launch of Avalanche Vista, a $50 million initiative to invest in RWA tokenization.

Additionally, on November 20, Blockworks researcher Dan Smith reported that Avalanche has its own standard called ASC-20.

Over the past day, ASC-20 Menting has increased, accounting for 96% of transactions in more than 170,000 wallets.

Avalanche Avax Price Outlook

The positive momentum lifted AVAX prices to an intraday high of $23.18 during Monday morning's Asian trading session.

It is currently trading up 7% on the day at $22.58, having recovered from last week's gains.

AVAX hit a yearly high above $24 on Nov. 17, and is up nearly 25% in the past week.

But the asset is down 84% from its peak two years ago, so there's plenty of room for further gains.