On Wednesday, Avalanche's price recorded a 4% gain on news of the new NYSE partnership.
AVAX is now trading at $8.54, up 2.7% over the past 24 hours despite a broader crypto market decline. The token's market cap also saw an increase of 2.8%, now sitting at $3.8 billion.
Avalanche is a Layer 1 blockchain supporting decentralized applications and custom blockchain networks. It helps companies build their own infrastructure using the Avalanche network.
Over the last month, Avalanche's price has declined by more than 21%, bottoming out at about $7.82.
NYSE's tokenized securities platform
NYSE's plans involve using the Avalanche network as the settlement ledger for its upcoming tokenized securities platform. The launch is still in development as regulatory approval has yet to be received.
The platform will support 24-hour trading of tokenized stocks across multiple blockchains. NYSE will deploy its own custom Avalanche-based blockchain rather than using the public Avalanche network.
Tokenized assets on Avalanche currently sit at $1.7 billion, while the network has recently surpassed 1.6 billion transactions.
This deal represents a major win for institutional adoption of Avalanche. However, it does not necessarily mean more demand for the native AVAX token.
AVAX price tests recovery
After steadily declining since early October, AVAX is finally showing some signs of trend reversal.
The $8.4-$8.5 range serves as an important support area. A breakout will pave the way for further recovery.
A drop below $8.37 would mean another fakeout, with a potential decline below the $8 level.
