Avalanche (AVAX) Powers Europe’s First Blockchain Trading System

AVALANCHE (AVAX)

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  • Securitize’s decision to use Avalanche for Europe’s first blockchain-based trading system signals growing institutional adoption of blockchain.
  • Avalanche’s high transaction speed and low finality time make it ideal for institutional applications like Securitize’s platform.
  • AVAX saw a 7.4% price increase after the announcement but could face short-term fluctuations around key price levels.

Avalanche (AVAX) announced a significant partnership with Securitize, a leading platform for tokenizing real-world assets (RWAs). Securitize secured full regulatory authorization from Spain’s CNMV (National Securities Market Commission) to launch Europe’s first blockchain-based trading and settlement system. This marks a pivotal step in the ongoing adoption of blockchain technology within the traditional finance sector. The blockchain chosen to power this groundbreaking system? Avalanche, known for its scalability, near-instant settlement times, and institutional-grade architecture.

Avalanche’s Role in Revolutionizing European Trading Systems

Avalanche Metrics
Source: Token Terminal

Securitize’s decision to build on the Avalanche blockchain highlights the growing demand for high-performance networks that can cater to institutional needs. One of the standout features of Avalanche is its impressive transaction speed and finality, processing up to 4,500 transactions per second (tps) with a finality time of just 2 seconds. This makes it an ideal fit for Securitize’s platform, which aims to create a secure and efficient way to trade tokenized assets across Europe.

Avalanche’s technical architecture is built to scale, offering flexibility for institutions that require robust security and speed for large-scale operations. Unlike Ethereum, which averages 23 tps, Avalanche operates well below its maximum capacity, emphasizing adoption over technological limits. This also means that Securitize’s blockchain-based system can handle massive transaction volumes without compromising performance.

Impact on AVAX Token: Short-Term Rally and Market Sentiment

The announcement led to an immediate rally in the price of AVAX, which surged by 7.4% within just eight hours of the news release. However, despite this initial surge, AVAX has since stabilized, trading between $14.9 and $15.

Avalanche Liquidation Map
Source: CoinGlass

Avalanche’s liquidations map indicates that the price movement was influenced by high-leverage long positions around the $13.65 mark, which were quickly liquidated following the rally. The quick surge highlighted the optimism surrounding the project, but also suggests that caution may be necessary. If the price dips back to $13.5-$13.7, it could present an attractive entry point for buyers. Conversely, a drop below $13.91 could signal a shift in market sentiment, warning that the bullish momentum might be weakening.

Also Read: AVAX Surge: Institutional Buying and Rising Activity Point to Bullish Trend

What This Means for the Future of Blockchain Adoption in Finance

Securitize’s choice to use Avalanche not only strengthens the network’s position in the blockchain space but also signals a wider trend of blockchain adoption in traditional financial markets. As regulatory frameworks around the world continue to evolve, more platforms are likely to follow suit, integrating blockchain for efficient, transparent, and secure asset trading and settlement.

The partnership highlights the growing trust in Avalanche’s technological capabilities, setting the stage for more blockchain-based financial systems in Europe and beyond.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.