Quick Breakdown
- Avalanche’s RWA TVL surged to $1.3B, led by BlackRock’s BUIDL fund.
- Major TradFi players adopted Avalanche for tokenized loans and indices.
- AVAX price lagged despite rising DeFi activity and transaction growth.
Blockchain network Avalanche recorded a sharp rise in institutional adoption during the fourth quarter of 2025, driven by growing interest in tokenized real-world assets (RWAs), even as its native token continued to lag the broader crypto market.
According to a Thursday report by Messari research analyst Youssef Haidar, the total value locked (TVL) of tokenized RWAs on Avalanche jumped 68.6% quarter-on-quarter and nearly 950% year-on-year, reaching a new high of over $1.3 billion.
A major catalyst was BlackRock’s $500 million USD Institutional Digital Liquidity Fund (BUIDL), which launched on Avalanche in November and significantly boosted on-chain asset growth.
Institutional partnerships fuel RWA growth
Beyond BlackRock, Avalanche attracted several high-profile traditional finance players in Q4. Fortune 500 fintech firm FIS partnered with Avalanche-based marketplace Intain to bring tokenized loan products on-chain. Intain allows around 2,000 U.S. banks to securitize more than $6 billion in loans using Avalanche’s infrastructure.
In another notable move, S&P Dow Jones Indices collaborated with Dinari, an Avalanche-powered platform, to launch the S&P Digital Markets 50 Index, which tracks a mix of 35 crypto-linked equities and 15 digital assets, all traded directly on the Avalanche network.
AVAX underperforms as on-chain activity rises
Despite the surge in network adoption, Avalanche’s native token AVAX struggled in the final quarter of 2025. The token fell 59% in Q4 to around $12.30 and has declined a further 10.5% in early 2026, trading near $11.
AVAX remains down more than 92% from its all-time high of $144.96 set in November 2021, underperforming major assets like Bitcoin and Ether, both of which have reached new cycle highs, according to CoinGecko data.
Meanwhile, on-chain activity showed stronger fundamentals. Native DeFi TVL on Avalanche rose 34.5% in Q4 to 97.5 million AVAX, while average daily transactions climbed 63% to 2.1 million.
Stablecoin growth on the main chain remained mostly flat, edging up just 0.1% to $1.74 billion. However, Tether’s USDT overtook USDC as the dominant stablecoin, accounting for 42.3% of supply, or $736.6 million, by the end of 2025.
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