Avalanche Rising: Will The Wine Capital Fund Turbocharge Gains Above $40?
May 16 2024 - 10:00PM
NEWSBTC
AVAX, the native currency of Avalanche, a high throughput
blockchain, is rising, adding an impressive 9% from May 15 lows.
Buyers are taking over after weeks of lower lows. While the
expansion of Bitcoin prices could explain these gains, there could
be more. Fine Wine Investment Fund Tokenized On Avalanche Avalanche
has announced tokenizing a fine wine investment fund, a move that
would see the platform ride on the wave of tokenization. In a
statement, Avalanche said the Wine Capital Fund has been tokenized
by Oasis Pro and listed on ATS via the Avalanche C-Chain, where
smart contracts are deployed. Related Reading: Why Did The Bitcoin
Price Rise Above $66,000 Today? The ATS is Oasis Pro’s trading
platform registered by the United States Securities and Exchange
Commission (SEC). Meanwhile, the capital fund is a “closed-end
investment vehicle.” Specifically, it specializes in fine wines and
is overseen by WIVX Asset Management. The decision to tokenize on
Avalanche is a step forward in creating a tokenized asset
ecosystem, mirroring progress made in Ethereum, among other
chains. By making inroads into the fine wines market,
estimated to be worth over $400 billion, the platform aims to
democratize access, making it available to more investors. Analysts
claim tokenization removes barriers common in traditional finance.
Notably, Avalanche will play a huge role since the network is
scalable, boosting a high throughput with sub-second
finality. The number of real-world assets (RWA) being
onboarded is rising. When writing, data from
RWA.xyz reveals that over $7.6 billion worth of private
credit has been tokenized. At the same time, months after
announcing the deployment of the BUIDL fund on Ethereum, it manages
over $381 million of tokenized United States treasuries. Efforts On
Meme Coins, DeFi: Will AVAX Break $40? Avalanche is not only making
progress in tokenization; earlier, they announced efforts to
encourage meme coin activity on-chain. To do this, the Avalanche
Foundation launched Memecoin Rush, a $1 million liquidity
mining incentive program. Related Reading: Red Alert For
Bitcoin: Network Hashrate Takes A 20% Dive The model follows the
Avalanche Rush program. The number of decentralized finance (DeFi)
solutions deploying on the high throughput chain rapidly grew
through this program. As of mid-May 2024, DeFiLlama data
shows that Avalanche DeFi protocols manage over $945 million. The
number has shrunk by over 90% since November 2021, at over $10.9
billion. AVAX prices are stable at spot rates. However, with the
coin finding support at $30 and printing a triple bottom, the path
of least resistance appears northward toward $40 or higher. Feature
image from UnSplash, chart from TradingView
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