- The Real World Assets sector in the DeFi markets started to grow.
- TVL on Avalanche continued to fall, but DEX volumes remained consistent.
The DeFi sector has taken a huge hit in recent months. Despite all expectations, some branches in the sector, such as Real World Assets (RWA), have experienced enormous growth. Initially, protocols such as MakerDAO were one of the few protocols to use RWAs, but Avalanche[AVAX] was observed to enter that space recently as well.
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According to recent data, TVL in RWAs surpassed the important milestone of $1 billion, marking a remarkable growth trajectory of about $900 million in this year alone. During this year, Avalanche made a remarkable commitment of significant capital for tokenized assets, indicating strong momentum in this direction. It won’t be surprising if this story gains momentum under Avalanche in the near future. The fast-growing TVL in RWAs and the strategic deployment of Avalanche underscore the rising prominence and potential of tokenized assets in the broader financial landscape.
RWAs Exceeded $1 Billion in TVL!
• Growth rate of approximately $900 million this year alone.@avax has already announced that they are committing significant capital to tokenized assets.
I wouldn’t be surprised if this one $AVAX guided story in the future. pic.twitter.com/Ny3qFuDF85
— Emperor Osmo🧪 (@Flowslikeosmo) August 5, 2023
Despite Avalanche’s attempt to increase its presence in the DeFi space, its TVL continued to decline. Avalanche’s TVL has fallen from $770 million to $608 million in recent months, according to Artemis data.
However, in terms of DEX volumes, Avalanche experienced consistent growth. This suggested that while there was a decrease in TVL for Avalanche, the protocol continued to generate interest through its DeFi-related dApps on the protocol.
Source: Artemis
Down the slope
In addition to its performance in the DeFi sector, the Avalanche network also witnessed a downward movement in terms of price.
After showing a bullish move and testing the $15,978 resistance level on July 14, AVAX prices saw a significant drop of 21.17%. During this period, the price of AVAX showed multiple lower lows and lower highs, creating a bearish trend.
Realistic or not, here is AVAX’s market cap in BTC terms
The price decline was in line with the declining CMF which fell to -0.01 at the time of writing. The negative CMF implied that the cash flow was not with the buyers.
In contrast, the RSI pointed to a positive outlook for AVAX. At the time of writing, it was 52.7, implying that the price momentum was bullish. It remains to be seen if AVAX price will manage to break its bearish trend or if it will test the $12.11 support levels before showing any positive movement.
Source: Trade View