Avalanche attracts governments and funds in Q3, but token lags 86% below peak

Avalanche is gaining ground as a preferred blockchain for governments and institutional investors, even as its native token continues to lag far below its all-time high.

During the past quarter, Wyoming’s Stable Token Commission issued the first government-backed stablecoin, the Frontier Stable Token (FRNT), on Avalanche and six other public blockchains, signaling a growing adoption of blockchain networks by governments. 

a fully collateralized stablecoin backed by US dollars and short-duration US Treasury bills with a mandated 102% reserve requirement, Cointelegraph reported in August.

Avalanche has also attracted traditional finance players. SkyBridge Capital, the investment firm led by Anthony Scaramucci, on the network.
Crypto analytics firm Nansen the trend as “quietly turning TradFi and gov tech into onchain reality,” adding, “DeFi just got institutional.”

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At the end of the third quarter, Avalanche had become the third-largest blockchain by the value of tokenized US Treasurys onchain, with $638 million, following BNB Chain and Ethereum, to data from RWA.xyz.

Tokenized Treasurys are minted on the blockchain to increase investor accessibility and trading opportunities. They are part of the growing real-world asset sector.

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Avalanche’s onchain data points to significant user activity, averaging over 1 million daily transactions, with a peak of 51.6 million daily transactions during the past quarter, according to Nansen.

However, the growing network usage has not attracted significant upside for Avalanche’s native utility token (), which is down 86% from its all-time high of $146 reached four years ago on Nov. 21, 2021.

Avalanche was trading at $19.66 at publication, down 33% during the past month, as the broader crypto market was hit by a event at the beginning of October, following US President Donald Trump’s 100% import tariff threats on Chinese goods.

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