Avalanche posts 70% surge in stablecoin and tokenized fund market cap in 2 years

Core Insights - The combined market capitalization of stablecoins and tokenized funds on the Avalanche blockchain has increased by approximately 70% from January 2024 to January 2026, rising from around $1.2 billion to over $2 billion [1][2]. Group 1: Stablecoins - Stablecoins are designed to maintain a stable value by being pegged to assets like the U.S. dollar, distinguishing them from volatile cryptocurrencies [3]. - The use of stablecoins for cross-border payments and settlements is increasing, as they trade 24/7, unlike the traditional banking system which is inactive on weekends and holidays [4]. - The total stablecoin market cap has grown significantly, from under $135 billion in mid-January 2024 to over $310 billion in mid-January 2026 [5]. Group 2: Tokenized Funds - Tokenized funds represent digital ownership of various funds, such as money market funds and exchange-traded funds (ETFs), on a blockchain network [6]. - The rise in tokenized funds on Avalanche is part of the broader trend of digital asset adoption in the financial sector [1].