Institutions are betting big on Avalanche to tokenize their assets. The network recorded spectacular growth of 950% in one year, driven by BlackRock and other financial giants. Yet, the AVAX token continues to collapse. How to explain this paradox?
In brief
- Avalanche records 68.6% growth in tokenized assets in Q4 2025, reaching $1.3 billion.
- BlackRock's $500 million BUIDL fund joined the blockchain last November.
- The AVAX token drops 59% in the fourth quarter and loses another 10.5% since January 2026.
BlackRock and financial giants bet on Avalanche
Avalanche is experiencing a remarkable institutional boom. According to Messari, the value of real-world assets tokenized on this blockchain jumped 68.6% in the fourth quarter of 2025. Over one year, the explosion reached 950%. November marks a turning point with the arrival of BlackRock's BUIDL fund, which injects $500 million into the ecosystem.
The traditional giants are hurrying. Fortune 500 fintech company FIS teams up with Intain to launch tokenized loans on Avalanche. This platform now allows 2,000 American banks to securitize more than $6 billion in receivables.
For its part, S&P Dow Jones is collaborating with Dinari to create an index tracking 35 crypto stocks and 15 digital tokens.
This massive adoption can be explained by a favorable regulatory context. The SEC has adopted a more open stance towards crypto products over the past year. Financial institutions are coming out of their reserves and testing tokenization without fear of sanctions. Avalanche is taking advantage of this window of opportunity with its fast, interoperable technology.
A thriving DeFi ecosystem despite the collapse of AVAX
Paradoxically, this massive institutional adoption does not benefit the AVAX token. The crypto lost 59% of its value in the fourth quarter of 2025, finishing around $12.30.
At the start of 2026, it continued its tumble with an additional drop of 10.5%, now trading near $11. A chasm separates AVAX from bitcoin and Ethereum, both of which have reached new all-time highs this cycle.
Yet activity on the blockchain is exploding. The value locked in native decentralized finance grew 34.5% last quarter, reaching 97.5 million AVAX. Average daily transactions jumped 63% to 2.1 million, a sign of real and growing use of the network.
On the stablecoin side, the capitalization on the Avalanche main chain remained stable at $1.741 billion. Tether's USDT took the top spot from Circle's USDC, now representing 42.3% of the total supply with $736.6 million in circulation at the end of 2025.
Avalanche illustrates a profound transformation of decentralized finance. Institutions are betting on infrastructure while retail investors are deserting the token. This dichotomy perhaps reveals the true nature of tokenization: a revolution in financial rails that does not necessarily guarantee the appreciation of native assets. The year 2026 will tell whether this institutional adoption will eventually be reflected in AVAX's price.
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