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- Avalanche’s RWA TVL reached $1.3B, driven by institutional adoption.
- Stablecoin and tokenized fund growth on Avalanche reflects real settlement demand.
- XRP faces heavy ETF outflows and fragile price structure.
Avalanche is quietly building one of the strongest institutional footholds in crypto, while XRP is grappling with sharp ETF-driven mood swings that highlight just how fragile institutional sentiment can be.
Together, the two stories show a widening gap between infrastructure-led adoption and market-driven speculation.
Avalanche’s RWA Surge Signals Structural Growth
Avalanche’s real-world asset (RWA) total value locked has climbed to $1.3 billion, reflecting years of deliberate infrastructure development rather than sudden hype. The network’s subnet architecture — which separates workloads into specialized chains — has improved scalability, reduced latency, and prevented congestion even as activity rises.
That foundation proved decisive in late 2025, when BlackRock expanded its $500 million BUIDL tokenized fund onto Avalanche. The move immediately boosted TVL and signaled confidence from one of the world’s largest asset managers. Tokenized real estate and aviation loan products from firms like FIS added further depth.
Usage has followed capital. Daily C-Chain transactions recently reached 2.1 million, fueled by RWAs, gaming, and enterprise activity. Rather than chasing retail speculation, Avalanche is positioning itself as an institutional settlement layer optimized for reliability.
Why Institutions Are Choosing Avalanche
Avalanche’s Evergreen and subnet frameworks allow for compliant, permissioned environments that align with regulatory expectations. Combined with sub-second finality, high throughput, EVM compatibility, and consistently low fees, the network offers an operational profile that appeals to large allocators.
According to RWA.xyz, Avalanche now holds one of the largest RWA shares outside Ethereum within a $19 billion global tokenized asset market. Strong transfer volumes and active secondary liquidity on platforms like Trader Joe point to real usage, not dormant capital.
Importantly, Avalanche’s strategy prioritizes durability over maximizing fee revenue — a long-term approach that resonates with institutional players seeking stability.
Stablecoin Activity Reinforces Institutional Demand
Avalanche’s stablecoin supply fluctuates between $1.63 billion and $2.19 billion, with USDT and USDC dominating. Roughly $69 billion in stablecoin transfers over the past month, up nearly 6%, suggests heavy settlement activity.
Combined stablecoins and tokenized funds on Avalanche have expanded more than 70% since January 2024, surpassing $2 billion. This growth aligns with payments, treasury management, and tokenized fund settlement — not memecoin cycles.
Ripple’s XRP experienced the opposite dynamic. After recording $6.9 million in ETF inflows, optimism quickly evaporated when Grayscale pulled $98 million — the largest ETF outflow XRP has ever seen.
Some institutions continued buying: Nasdaq, Bitwise, and Franklin collectively added over $5 million. Still, daily net outflows reached $92.9 million, and weekly outflows totaled $69 million. XRP’s price dropped about 10%, failing to hold key support near $1.62–$1.75 and risking a slide toward $1.26 unless momentum improves.
Also Read: Solana Prints $110B DEX Volume as XRP Struggles to Break $2.15
Ripple’s upcoming XRP Community Day in February may renew attention, but near-term price direction remains tethered to unstable institutional flows.
Avalanche’s steady rise in RWAs and stablecoin usage reflects infrastructure-driven adoption with long-term potential. XRP’s recent ETF turbulence, meanwhile, underscores how quickly institutional enthusiasm can reverse. As crypto matures, the contrast highlights a critical distinction: networks building durable financial plumbing may outperform assets dependent on shifting market sentiment.
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.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
