Avalanche Tokenization Value Raised To $1.3b By 2025
The blockchain network's avalanche in the fourth quarter saw institutional adoption by tokenized money market funds, loans and indexes, driving the value of real-world assets at Layer 1 to new highs, even as the token outperformed the broader market.
The value of real-world assets locked in Avalanche rose 68.6% in the fourth quarter of 2025 and nearly 950% year-over-year in BlackRock's $500 million USD Institutional Digital Liquidity Fund (BUIDL), which launched in November.
Fortune 500 fintech FIS partnered with Avalanche-based marketplace Intain to launch token loans in November, further boosting Avalanche's TVL, Hyder said. Intain allows 2,000 US banks to hold more than $6 billion in loans against Avalanche.
S&P Dow Jones also partnered with Denary, the Avalanche-powered blockchain, to launch the S&P Digital Markets 50 Index, which tracks 35 crypto-related stocks and 15 crypto tokens on Avalanche.
Traditional financial firms have become more confident about experimenting with tokenization over the past year as the Securities and Exchange Commission has become more open to crypto products.
AVAX continues to stock up.
The Avalanche (AVAX) token did not fare well in Q4, falling 59% to $12.3 and sliding another 10.5% to $11 in 2026.
AVAX has not seen price action this market cycle like Bitcoin (BTC) and Ether (ETH), both of which hit new all-time highs, with AVAX down more than 92% from its November 2021 peak of $144.96, CoinGecko data shows.
Avalanche DeFi up
The value locked in AVAX's native decentralized finance rose 34.5% from Q4 to 97.5 million AVAX, while the average number of daily transactions on the Avalanche blockchain increased 63% to 2.1 million during the same period, Hyder said.
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The total stablecoin market cap on Avalanche's main chain was relatively flat in Q4, up 0.1% from Q4 to $1.741 billion, an increase of around $1 million.
Tether's stablecoin USDt (USDT) beat Circle's USDC (USDC) to become the dominant stablecoin on Avalanche by the end of 2025, representing 42.3% of the total supply with $736.6 million in circulation.
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