Avalanche Stablecoin Surge Signals Major Market Shift

Key Points

• Avalanche Stablecoin Surge Signals Major Market Shift
• Wyoming launches US state stablecoin on Avalanche
• Japan approves yen stablecoin for the Avalanche network
• Toyota and SkyBridge push RWA tokenization on AVAX
• 50M wallets and high user activity hint AVAX is undervalued

Avalanche is rapidly emerging as one of the most trusted networks for stablecoins and real-world asset (RWA) tokenization.

While Ethereum still dominates in terms of infrastructure adoption, Avalanche is now proving to be a serious contender, especially for institutions looking for performance and scalability.

A major highlight is Wyoming’s decision to launch the first U.S. state-backed stablecoin on Avalanche. This move marks a significant shift in blockchain adoption by governments, bypassing Ethereum in favor of Avalanche’s more tailored and cost-efficient platform.

Japan is not far behind. A yen-pegged stablecoin has gained regulatory approval and is expected to go live soon on the Avalanche network.

This positions Avalanche at the forefront of global stablecoin innovation, attracting attention not just from crypto-native companies but also regulators and governments.

On the corporate side, Avalanche continues to expand. Toyota recently released a whitepaper outlining its Mobility Orchestration Network, a future infrastructure project that relies on Avalanche technology.

Why did Toyota Blockchain Lab build its prototype for vehicle finance and mobility on Avalanche 🔺?

Every other EVM chain = one L1.

Avalanche = infinite L1s. pic.twitter.com/uxPNbjP9dx

— Avalanche🔺 (@avax) August 19, 2025

It’s a bold move from one of the world’s largest auto manufacturers, validating Avalanche’s appeal to the traditional industry.

In the investment world, SkyBridge Capital, led by Anthony Scaramucci, has announced a $300 million tokenization project on Avalanche.

Avalanche ranks 2nd in average monthly trading volume per user. Source: Leon on X – Techtoken

This initiative signals that financial giants are beginning to view Avalanche as a credible platform for asset-backed tokenization.

Meanwhile, other parts of the crypto world are showing signs of tension. For example, as Avalanche rises, Ethereum whales are quietly selling off holdings amid growing competition.

Ethereum still dominates with $521K monthly transfer volume per user, but Avalanche has quietly secured the #2 spot at $206K.

1. ETH: $521K
2. AVAX: $206K
3. OP: $82K
4. TRON: $71K

Capital efficiency tells you where serious flows happen. pic.twitter.com/u4LQfPhiAe

— Leon Waidmann 🔥 (@LeonWaidmann) August 20, 2025

On-Chain Metrics Show Explosive Ecosystem Growth

Avalanche isn’t just seeing buzz; it’s seeing numbers. According to recent data, the network has now surpassed 50 million unique wallet addresses, a clear indicator of growing user engagement and mainstream adoption.

$AVAX crossed 50M unique addresses pic.twitter.com/CizOmHa3bp

— Mash (@Mash_CT) August 19, 2025

In terms of monthly average transaction volume per user, Avalanche ranks second after Ethereum.

The numbers speak volumes: Ethereum leads with $521,000, while Avalanche follows with $206,000 per user. For a chain often overlooked in favor of Ethereum or Solana, that’s a major signal of strength.

Development activity is also surging. Data from Nansen shows Avalanche ranks among the top chains in terms of ecosystem growth for RWA-focused projects.

This means more builders, more tools, and more real-world applications being developed on AVAX every day.

Avalanche activity. Source: Nansen – Techtoken

Yet, despite these impressive figures, the market valuation of AVAX remains low. Analysts and on-chain watchers have frequently pointed out the gap between activity and price. One crypto user summed it up best:

“It’s embarrassingly cheap considering the developments in the last 12 months.”

Avalanche activity is on the rise. 🔺

Over the last 30 days, transactions jumped from ~500K/day lows to 1.3M+ daily transactions, more than doubling in just two weeks!

Momentum on @avax is definitely heating up. pic.twitter.com/iDIW8Vihw3

— Nansen 🧭 (@nansen_ai) August 18, 2025

This disconnect could mean a potential buying opportunity for long-term investors looking for underappreciated assets with high growth potential.

Some argue that Avalanche could benefit from the uncertainty in broader market sentiment, such as the increased Bitcoin volatility ahead of Fed Week or the pressure on altcoins after ALT5 Sigma came under SEC investigation.

Why Avalanche Is a Strong Contender in the RWA Race

The rise of real-world asset tokenization is one of the biggest trends in crypto today.

Institutions are seeking compliant, scalable platforms to bring traditional assets, like real estate, bonds, and commodities, on-chain. Avalanche is proving to be one of the most ready and capable blockchains for this evolution.

With SkyBridge’s $300 million RWA project and Toyota’s enterprise infrastructure plans, Avalanche is not just hosting random DeFi protocols; it’s enabling real-world utility at scale.

Avalanche is the most undervalued major in the entire market.

It’s actually embarrassingly cheap considering the developments the last 12 months. https://t.co/oSwYDTcpED

— Jonny 👾 (@0xHustlepedia) August 19, 2025

Unlike Ethereum, which is often congested and expensive, or newer chains that lack trust, Avalanche strikes a balance. It offers fast finality, low fees, and institutional-grade infrastructure, the perfect environment for RWAs.

Moreover, Avalanche has been actively working to onboard traditional finance. Its Subnet architecture allows institutions to launch custom blockchains tailored to their needs, with optional compliance and privacy features.

This flexible setup is why Avalanche is seeing traction from major players who would otherwise avoid public chains.

In this context, the growing stablecoin adoption on Avalanche is not just a fluke; it’s part of a broader strategy to become the go-to network for tokenized finance.

While some ecosystems are facing setbacks, like the Pi Hackathon 2025 backlash or team shakeups such as the Story Protocol co-founder’s exit, Avalanche is gaining ground steadily.

Could AVAX Be a Hidden Gem in Today’s Market?

As more institutions turn to Avalanche for stablecoins and Avalanche stablecoin, the network’s fundamentals continue to strengthen. But the price of AVAX doesn’t reflect this growth, yet.

This mismatch between adoption and valuation is raising eyebrows among crypto investors. Many are calling AVAX undervalued, especially compared to its Layer-1 peers.

With a strong user base, growing corporate partnerships, and rising on-chain activity, Avalanche might be one of the few Layer-1s in a real position to scale beyond crypto-native use cases.

Of course, the broader market remains volatile. Macroeconomic factors, regulatory hurdles, and stiff competition from Ethereum, Solana, and others could slow Avalanche’s progress. But the chain has proven itself resilient and innovative.

For investors tracking key events like the recent Jackson Hole Bitcoin rally, Avalanche presents a different narrative, less hype, more building.

As more capital flows into tokenization and governments and enterprises look for secure, scalable solutions, Avalanche could be at the right place at the right time.

For those watching the market, AVAX might just be the hidden gem in the current bear-to-bull transition.