The combined market capitalization of stablecoins and tokenized funds on the Avalanche blockchain network has experienced a substantial increase, rising by approximately 70% since January 2024. This growth was highlighted by the onchain metrics platform Token Terminal on January 19.
🔺📊 The combined market cap of stablecoins & tokenized funds on @avax is up by ~70% since January '24. pic.twitter.com/pk1USA0e53
— Token Terminal 📊 (@tokenterminal) January 19, 2026
Avalanche, launched in 2020 by Ava Labs, is a layer-1 blockchain network designed to provide a fast and cost-effective environment for the development of decentralized applications (dApps).
According to the latest data from Token Terminal, the combined market capitalization of stablecoins and tokenized funds on the Avalanche network has grown from an estimated $1.2 billion in January 2024 to just over $2 billion in January 2026. This represents a growth of approximately 70% over a two-year period.
Understanding the Surge in Stablecoin Adoption on Avalanche
Stablecoins are designed to maintain a stable value, typically by being pegged to assets such as the U.S. dollar, distinguishing them from more volatile cryptocurrencies like Bitcoin. Stablecoins pegged to the U.S. dollar are increasingly utilized as a form of "digital dollar" for various financial operations, including cross-border payments, settlements, and transfers.
Institutions are increasingly turning to stablecoins for payment settlements, particularly as the traditional global banking system observes downtime during weekends and public holidays. Stablecoins, however, are tradable 24/7.
In July of the previous year, the GENIUS Act was enacted into law by the Donald Trump administration. This legislation aims to regulate USD-pegged stablecoins and reinforce the dominance of the U.S. dollar amidst efforts by countries like China to promote de-dollarization globally.
Data from DeFiLlama indicates a broader trend in stablecoin growth, with the total stablecoin market capitalization expanding from under $135 billion in mid-January 2024 to over $310 billion in mid-January 2026.
Understanding the Growth of Tokenized Funds on Avalanche
Tokenized funds represent the digital representation of ownership in various financial instruments, such as money market funds and exchange-traded funds (ETFs), as tokens on a blockchain network.
Analysis of data from Token Terminal suggests that the proportion of tokenized funds within the combined market capitalization on the Avalanche network has been steadily increasing.
A key advantage of tokenized funds, like stablecoins, is their 24/7 tradability, a stark contrast to traditional markets which operate on fixed schedules. Furthermore, tokenized funds facilitate fractional ownership and enhance market affordability and accessibility.
These tokens offer investors indirect exposure to funds, which can be particularly beneficial for those who face regulatory restrictions or accessibility limitations with traditional investment avenues.
The evolving landscape of tokenization is also being recognized by major financial institutions. On January 19, the New York Stock Exchange (NYSE) announced the development of a platform dedicated to the trading and on-chain settlement of tokenized securities.
Current data indicates that Avalanche is positioned as a significant player among blockchain networks facilitating the rapid expansion of both stablecoins and tokenized funds.