- Real World Assets sector in the DeFi markets started to see growth.Â
- The TVL on Avalanche continued to decline, however DEX volumes remained consistent.
The DeFi sector, over the last few months, has taken a massive hit. However, a few verticals in the sector, such as Real World Assets (RWA), have witnessed tremendous growth despite all odds. Initially, protocols such as MakerDAO, were one of the few protocols that had leveraged RWAs, however, Avalanche[AVAX] was observed to be recently getting into that space as well.
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Is it too late to tokenize?
According to recent data, the TVL in RWAs surpassed the significant milestone of $1 billion, marking a remarkable growth trajectory of approximately $900 million within this year alone. During this year, Avalanche made a noteworthy commitment of substantial capital towards tokenized assets, indicating a strong impetus in this direction. It won’t be surprising if this narrative gains momentum under Avalanche in the foreseeable future. The burgeoning TVL in RWAs and the strategic commitment by Avalanche underscore the increasing prominence and potential of tokenized assets in the broader financial landscape.
RWAs crossed $1B in TVL!
• A growth rate of about $900M this year alone.@avax has already announced their committing significant capital to tokenized assets.
Wouldn’t be shocked if this becomes an $AVAX led narrative in the future. pic.twitter.com/Ny3qFuDF85
— Emperor Osmo? (@Flowslikeosmo) August 5, 2023
Despite the attempt made by Avalanche to increase its presence in the DeFi space, its TVL continued to decline. According to Artemis’ data, Avalanche’s TVL fell from $770 million to $608 million, over the last few months.
In terms of DEX volumes, however, Avalanche witnessed consistent growth. This suggested that even though there was a decline in TVL for Avalanche, the protocol continued to draw interest through its DeFi-related dApps on the protocol.
Source: Artemis
Down the slope
Along with its performance in the DeFi sector, the Avalanche network also witnessed a downward movement in terms of price.
After showing bullish movement and testing the $15.978 resistance level on the 14 July, AVAX’s prices observed a significant decline of 21.17%. During this period, the price of AVAX showcased multiple lower lows and lower highs, establishing a bearish trend.
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The fall in price was in accordance with the declining CMF which fell to -0.01 at the time of writing. The negative CMF implied that the money flow wasn’t with the buyers.
In contrast to that, the RSI indicated a positive outlook for AVAX. At press time, it was at 52.7 implying that the price momentum was bullish.It remains to be seen whether AVAX’s price manages to break its bearish trend or whether it will test the $12.11 support levels before seeing any positive movement.
Source: Trading View
