-
Avalanche has underperformed the crypto market in the past few weeks.
-
Avalanche is now targeting the $30 trillion tokenization industry.
Avalanche price remained under pressure as cryptocurrencies retreated. The AVAX coin retreated to a low of $12.84, the lowest level since July 13th. It has dropped by more than 16% from the highest point this month.
Avalanche focuses on tokenization
Avalanche crypto price has been under intense pressure in the past few months as activity in its ecosystem continues. A closer look at its DeFi platform shows that the total value locked (TVL) in its ecosystem stands at over $1.76 billion.
At its peak, Avalanche had a TVL of over $21 billion. Some of the most popular dApps in its ecosystem are Wonderland, Aave, Benqi, GMX, and Trader Joe among others. These dApps have seen their activity retreat. For example, the trading volume of GMX in Arbitrum is much bigger than that in Avalanche.
Avalanche is now focusing on tokenization. In a statement, the Avalanche Foundation said that it willl purchase tokenized assets minted in its ecosystem worth over $50 million. This program has been christened as Avalanche Vista.
Most analysts believe that tokenization is the future of the crypto industry. For example, Franklin Templeton, one of the biggest companies in finance, announced that its OnChain US Government Money Market Fund (FOBXX) was now in Polygon. In a report, Boston Consulting Group has estimated that tokenized assets could jump to over $30 trillion.
Avalanche is now entering an industry that is highly competitive. Some of the top players in the industry are Ethereum, Zilliqa, Solana, and Polygon. In a note, the CEO of Intain said:
“Moving parts of the asset administration process on-chain allows issuers to have one workflow and one system of record, enabling a better, more seamless user experience for service providers and investors.”
Avalanche price prediction
The daily chart shows that the AVAX price has been under pressure in the past few days. It has moved below the 25-day and 50-day exponential moving averages (EMA). The token has moved slightly above the lower side of the ascending channel shown in black. Further, the MACD is nearing the neutral point.
Therefore, the AVAX token will likely continue falling as sellers target the key support at $11.10, the lowest level on June 18th.