The combined market capitalization of stablecoins and tokenized funds on the Avalanche blockchain network has risen by approximately 70% since January '24, the onchain metrics platform Token Terminal highlighted on Jan. 19.
Launched in 2020, Avalanche is a blockchain network developed by Ava Labs. It is a layer-1 network that offers a fast, low-cost environment for building decentralized applications (dApps).
As per the latest data from Token Terminal, the combined market cap of stablecoins and tokenized funds on Avalanche has risen from roughly $1.2 billion in January 2024 to a little above $2 billion in January 2026.
It represents a jump of around 70% within a span of two years.
Related: Avalanche facilitates Galaxy Digital's $75M tokenized CLO debut
Understanding stablecoin surge on Avalanche
Unlike volatile cryptocurrencies like Bitcoin (BTC), stablecoins are designed to maintain a stable value by being pegged to assets like the U.S. dollar .
Stablecoins pegged to the U.S. dollar have become a type of "digital dollar" and are being increasingly used for cross-border payments, settlements, and transfers.
Related: Explained: What is a stablecoin?
Given the fact that the global banking system sleeps over weekends and other public holidays, institutions have now turned to stablecoins to settle payments as these assets trade 24/7.
In July last year, the Donald Trump administration signed the GENIUS Act into law to regulate USD-pegged stablecoins and leverage them to consolidate the dominance of the dollar as rival countries like China are trying to de-dollarize the world.
As per DeFiLlama , the total stablecoin market cap has grown from under $135 billion in mid-January 2024 to over $310 billion in mid-January 2026.
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Understanding tokenized fund surge on Avalanche
Tokenized funds are nothing but the digital representation of the ownership of funds, such as money market funds, exchange-traded funds (ETFs), etc., as tokens on a blockchain network.
Related: What is tokenization? Explained
A quick look at the Token Terminal chart reveals that the share of tokenized funds in the combined market cap on the Avalanche network has expanded over time.
As explained above, the traditional markets don't trade 24/7.
Enter tokenized funds.
Unlike traditional funds, tokenized funds trade 24/7. Not only that, but they also offer fractional ownership of funds and make markets more affordable and accessible.
These tokens provide indirect fund exposure to investors who don't want to or can't own funds trading on traditional avenues due to regulatory or spatial reasons.
Even Wall Street is appreciating the changing trend.
On Jan. 19, the New York Stock Exchange (NYSE) announced the development of a platform for trading and on-chain settlement of tokenized securities.
As data suggests, Avalanche is among the leading blockchain players to anchor the rapid growth of both stablecoins and tokenized funds.
This story was originally published by TheStreet on Jan 20, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
