AVAX jumps 12.7% after NYSE picks Avalanche to settle tokenized stocks — Details
Every trade on the upcoming platform will be cleared on Avalanche.
Avalanche [AVAX] wasn’t having a great time. Then, NYSE decided to use Avalanche to settle tokenized stocks, and AVAX woke up fast!
The timing worked out nicely too, with the platform walking out of its best quarter yet.
What is happening exactly?
Avalanche will keep the books for NYSE’s tokenized stocks platform
To put it simply, Avalanche is where the receipts will get written.
According to a press release, Avalanche will be the core ledger for the clearing firm behind an upcoming NYSE-affiliated trading platform. Every trade will get cleared and settled on it.
The stocks themselves can be issued on other blockchains.
NYSE’s own Pillar engine will still handle the trading. The plan is round-the-clock trading, instant settlement and funding with stablecoins, though it’s pending regulator approval.
Why Avalanche though? According to Dennis Lee, the man who heads digital issuance at the NYSE, the exchange wanted a ledger that settles fast, keeps costs predictable, and lets them decide who gets in.
Avalanche’s Q3 numbers
The timing here is interesting because this NYSE news is coming along the back of Avalanche’s best Q3 record.
According to data from Blockworks and Avalanche, Pharaoh’s DEX volume went up by 2x from Q2 to Q3 to $5.33 billion. Spending on Avalanche-linked cards also went up to 74%.
The finance side went up too. On-chain credit went up by 34% to $37.4 million. Tokenized treasuries on the network hlked 14% too.
For anyone wondering if people actually want stocks on Avalanche, here’s something to note though. Dinari’s stock purchases went up 34% to 9 million. That’s small next to Wall Street, yes, but it’s the same idea the NYSE is now building towards. Just… bigger.
On top of all that, the mainnet has handled 1.6 billion transactions in total!
What is AVAX doing now?
The altcoin spent most of the morning simply drifting around $8.00, after bottoming out near $7.83. From there, it went up fast.
In fact, its price shot up from $8.10 to $8.45, and it didn’t stop. AVAX tagged roughly $8.93 before settling near $8.83. That hinted at a 12.7% hike above the altcoin’s daily low.
Its RSI shot past 90 during the spike, before falling to 62.5 at press time. That was just below the Signal Line.
Finally, the DMI seemed to be bit more convincing. The ADX was at 56.7, hinting at a strong trend. Buyers seemed to be leading the charge, with +DI at 29.7 against -DI at 13.1.
If AVAX can push through $9, things are likely to get interesting.
Final Summary
- Avalanche will settle trades for an NYSE-linked tokenized stock platform.
- AVAX hiked by 12.7% after the news.
