The Avalanche blockchain network saw growing institutional adoption in tokenized money market funds, loans and indexes in the fourth quarter, pushing the value of real assets in Layer 1 to novel highs even as its token underperformed in the broader market.
Avalanche’s total value of locked tokenized real assets increased 68.6% in the fourth quarter of 2025 and nearly 950% on the year to over $1.3 billion, led by the launch of the $500 million BlackRock USD Institutional Digital Liquidity Fund (BUIDL) in November, according to Messari research analyst Youssef Haidar he said in Thursday’s report.
Haidar said Fortune 500 fintech FIS has partnered with Avalanche-based Intain platform to launch tokenized lending in November, further increasing Avalanche’s TVL. Intain enables 2,000 U.S. banks to securitize more than $6 billion in loans on Avalanche.
S&P Dow Jones also partnered with Dinari, a blockchain powered by Avalanche, to launch the S&P Digital Markets 50 Index, which tracks 35 cryptocurrency-related stocks and 15 crypto tokens on Avalanche.
Customary financial firms are becoming more willing to experiment with tokenization as the Securities and Exchange Commission has become more open to crypto products over the past year.
AVAX continues to refuel
The Avalanche token (AVAX) did not perform very well in Q4, falling 59% to $12.3 in Q4 and falling another 10.5% in 2026 to around $11
This market cycle, AVAX has not seen price action like Bitcoin (BTC) and Ether (ETH) hit novel all-time highs, with AVAX down over 92% from its all-time high of $144.96 in November 2021, CoinGecko data can be seen.
Avalanche DeFi up
Value locked in native version decentralized finance on AVAX increased 34.5% from the fourth quarter to 97.5 million AVAX, while the number of average daily transactions on the Avalanche blockchain increased 63% to 2.1 million over the same period, Haidar said.
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The total market capitalization of stablecoins on the Avalanche mainchain remained relatively flat in the fourth quarter, increasing by 0.1% from the fourth quarter to $1.741 billion, an enhance of approximately $1 million.
Tether USDt (USDT) stablecoin overtook USDC (USDC) Circle to become the dominant stablecoin on the Avalanche platform, representing 42.3% of total supply by the end of 2025, with $736.6 million in circulation.
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