Rich by Coin

Avalanche (AVAX) has fallen more than 94% from its all-time high, underscoring the depth of the drawdown for a former Ethereum rival. While price action has been challenging, several catalysts are forming that could support a recovery if capital returns to the market. ProgMat, Japan’s largest digital securities platform, is moving assets onto Avalanche, with real-world assets such as real estate and corporate bonds totaling around $20 billion migrating on-chain via the Corda platform.

VanEck’s research notes that Avalanche’s Snowman consensus yields a rapid ~1.2-second block time and near-instant finality, offering tangible benefits for finance. By comparison, Ethereum’s block time runs around 12 seconds with finality around 12.8 minutes. Transactions on AVAX are reportedly cheaper than those on competing networks. VanEck’s physical AVAX ETF remains the only AVAX ETF trading in the market.

However, data shows investor exposure remains limited: one-month net assets around $11.5 million versus roughly $810 million for the LINK ETF and over $8 billion for the SOL ETF. CryptoRank data indicate AVAX and DOT experienced more than 94% drawdowns, among the largest declines in major altcoins. Meanwhile, on-chain metrics point to renewed momentum in February, with daily active addresses surpassing 1.3 million, a record for a Layer-1. AVAX’s new slogan should emphasize technology over price.

BeInCrypto notes broad negative sentiment across the market, which could affect capital allocation if it persists. Analysts suggest that a fresh wave of capital inflows could make solid fundamentals a priority for investors. In Japan, ProgMat accounts for about 63% of issuances and 53.8% of projects in the domestic digital securities space, with total issued value surpassing 216.9 billion yen. The market is projected to exceed 1.5 trillion yen (about $70 billion) by late 2026.