Charles Schwab analyzes Avalanche role in RWA tokenization

Charles Schwab’s research arm has identified Avalanche (AVAX) as a leader in the custom-blockchain niche and real-world asset (RWA) tokenization. However, the analysis questions whether increased network activity and institutional adoption will translate into proportional demand for the AVAX token.

While Avalanche is noted for its high-utility financial activity, Schwab expressed concern that activity on custom chains may occur outside the primary network. The report noted that while the global RWA market was estimated near $50 billion in late September, most value remains on Ethereum. Different metrics for Avalanche's RWA total value locked (TVL) have been reported, with one tally showing $13.04 billion in RWA value as of October 21, though this includes both represented and distributed assets.

On the market side, AVAX has experienced significant volatility, including a 68% rally in late September followed by a 23% pullback. Technical analysis indicates the token is testing key support levels amid a falling wedge pattern.