Avalanche Gains Institutional Momentum as Securitize Chooses AVAX for EU Trading System — Here Is Why It Matters

3 weeks ago 40
  • Avalanche secures major institutional adoption as Securitize selects AVAX for the EU’s first regulated blockchain settlement system.
  • AVAX rallied 7.4% on the news, though liquidation clusters suggest a potential dip toward $13.5–$13.7.
  • Key support flips show improving structure, but an H4 close below $13.91 would signal trend weakness.

Avalanche is back in the spotlight after Securitize announced it will build the EU’s first fully regulated blockchain-based trading and settlement system on the AVAX network. The news followed Securitize receiving full authorization from Spain’s CNMV, marking a turning point for real-world asset (RWA) tokenization across Europe. Avalanche’s near-instant settlement, 2-second finality, and institutional-ready structure were key reasons behind the decision. This move has strengthened both immediate sentiment and long-term confidence in the AVAX ecosystem.

Network Metrics Show Strength Beneath the Surface

Recent data from Token Terminal shows Avalanche averaging 23 transactions per second and roughly 30,000 daily active addresses—similar to Ethereum’s current throughput. But unlike ETH, Avalanche can scale to 4,500 tps with ease, according to Nansen. Securitize choosing Avalanche highlights a chain operating far below its maximum capacity, signaling that its limitations are adoption-driven, not technical.

AVAX quickly reacted to the announcement, rallying 7.4% within eight hours before settling into a quieter range around $14.9–$15.

Liquidation Pressure Could Trigger a Short-Term Dip

According to CoinGlass data, the rapid move from $13.9 left behind a concentration of high-leverage long liquidations around $13.65. Long liquidations currently outweigh short ones near price, increasing the likelihood of a wick lower to clear leverage before the next leg up. Traders should be cautious heading into the weekend, as low liquidity often amplifies liquidation hunts.

Key Levels and Market Structure

On the 4-hour chart, Avalanche is slowly unwinding its earlier monthly downtrend. Former resistance zones are flipping into support, with $14.84 holding as the latest reclaimed level. However, a large imbalance remains around $14, hinting at unfinished business below.

A dip into the $13.5–$13.7 region would align with liquidation clusters and offer a favorable buy zone. Conversely, a 4-hour close below $13.91 would break structure and signal weakening bullish momentum.

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