Among the several areas where the next bull market may explode, RWA has been one of the areas highlighted in our previous articles. We believe its growth potential will be 100 times greater than any DeFi dApp today.
At present, some well-known projects are also actively paying attention to or entering the field of RWA. For example, Avalanche (AVAX), which we are going to introduce today, some of their latest developments indicate that they seem to be preparing to seize market share in the RWA field.
In the second quarter of this year, Avalanche launched a subnet called Evergreen, a suite of institutional blockchain tools and custom tools designed to meet the specific requirements of institutional firms for financial services. Inter-company communication on the Evergreen subnet is enabled using Avalanche's native communications protocol, Avalanche Warp Messaging (AWM). The AWM feature provides local communication between any two blockchains on different Avalanche subnets.
For example, institutions such as T. Rowe (T. Rowe Price Associates, a U.S. listed investment management company) and Wellington (Wellington Management Company) are already using the Evergreen subnet's test network Spruce for various applications and assets. Testing to measure the benefits of on-chain transaction execution and settlement. The Spruce testnet is designed to enable institutions on both sides of the transaction to participate in public blockchain infrastructure in a low-risk, low-barrier-to-entry manner.
It can be said that the launch of Evergreen is an important step for Avalanche to enter traditional institutional capital. Moreover, in order to accelerate the capture of more RWA markets as soon as possible, the Avalanche Foundation seems to have been making related strategic investments this year. One such initiative, for example, is the Avalanche Vista program, which allocates $50 million to promote RWAs.
At the same time, in order to further strengthen operations, Avalanche has recently opened up additional new avenues for liquidity, and they are strategically using Circle (the issuer of the USDC stablecoin) newly upgraded EURC (Euro Stablecoin) to expand into the European market.
Regarding the development of the European market, John Nahas, vice president of business development of Avalanche developer Ava Labs, once said: The launch of Euro Coin on Avalanche is a critical moment for them, opening up new opportunities for Avalanche developers and end users. possibilities, looking forward to good feedback and use of Euro Coin on Avalanche.
(The above picture comes from circle official website)
Judging from the current development, Avalanche seems to be becoming the host of the new euro stablecoin.
For example, some DeFi protocols such as Trader Joe and ReHold are currently planning or have already used liquidity to expand their presence on Avalanche. Take ReHold as an example. They recently launched a series of Duals (dual currency investment) products and announced that they have supported gas-free transactions provided by Avalanche technology. As shown below.
(The picture above comes from the rehold official website)
These Duals products essentially offer a higher APR (Annual Percentage Rate) for short-term staking liquidity over a longer period of time. But it is foreseeable that as more and more protocols launch similar products, it will eventually help ensure a lot of liquidity for the euro on Avalanche.
Moreover, according to previous hints from Trader Joe’s officials, they seem to be planning to expand their RWA business through Avalanche. As shown below.
Currently, we can also find a EURC pool through Trader Joe’s official website. As shown below. So don’t be surprised if one day in the future you find more EURC-related products appearing in Trader Joe’s pool.
So why is Avalanche so keen to grow its RWA business in Europe?
First, Avalanche has not been developing very well in the European market, and now it needs to increase its expansion efforts. Second, there are currently more than 17 different RWA projects concentrated in Europe, which may be beneficial when they are deployed on Avalanche. As shown below.
Taken together, the current Avalanche seems to be more focused on building the things needed to attract institutional capital, such as the implementation of Evergreen, the launch of Avalanche Vista (for the RWA field), and now their entry into the EURC stablecoin field, etc. As more and more institutional capital begins to return to the encryption market, Avalanche is an existence that we can no longer ignore, and we are currently relatively optimistic about its future development.
As for the price of AVAX, due to the influence of the overall market and some of its own positive factors, it seems to have started to show an upward trend this week. It is currently trying to break through the key position of $22. If it can successfully break through this position and maintain it, then the next A move is likely to go to $60 without much resistance. Otherwise, it may fall back to the strong support level of around $15, which is also a good position for long-term layout of AVAX. However, it should be reminded and noted that this is only based on personal opinions and speculations and does not serve as any investment advice, please DYOR.
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Special thanks for this article: Flowslikeosmo, 0xTHades
Note: The above content is only a personal perspective and analysis. It is only for popular science learning and communication among crypto enthusiasts and does not constitute any investment advice. The crypto market is an extremely high-risk area. Please treat it rationally, increase your awareness of risk prevention, and abide by the relevant laws and regulations of the country and region where you are located!
