Schwab’s Avalanche Analysis Questions Whether Network Activity Drives Token Demand

Charles Schwab’s research arm described Avalanche (AVAX) as a leader in the custom-blockchain niche but questioned whether broader ecosystem activity would translate into matching token demand.

A Sept. 30 analysis considered whether activity in real-world assets (RWAs) could support a higher relative valuation for AVAX. Schwab placed Avalanche’s total value locked (TVL) at $3.4 billion on Sept. 7, ranking it fifth among smart-contract networks behind Ethereum, Tron, Solana and BNB Chain. RWAs made up most of that TVL.

The analysis put the global RWA market near $50 billion as of Sept. 24, with most of the value on Ethereum. Schwab estimated that less than $2 billion was on Avalanche.

A separate tally dated Oct. 21 counted $13.04 billion in Avalanche RWA value, excluding stablecoins. That sum included $11.4 billion in represented assets and $1.63 billion in distributed assets. Distributed tokens can move beyond the issuing platform and between wallets; represented assets cannot. The combined total therefore does not mean $13.04 billion in assets could move freely between wallets.

Avalanche separately listed $1.79 billion in RWA TVL across 1,255 distinct assets as of Sept. 28. That figure is closer to Schwab’s estimate below $2 billion, but it uses a different date and measure from the Oct. 21 combined tally.

Schwab’s concern is that activity on custom chains may take place outside Avalanche’s primary network, without creating a proportional increase in AVAX demand. The analysis also noted that network usage had recently trended lower. It cited stablecoin issuance, lending, asset management and liquid staking among the network’s financial activity.

Schwab’s Aug. 27 announcement separately outlined plans to add Avalanche, Solana and Chainlink trading to Schwab Crypto in the coming months. Bitcoin and Ether were already available, and the announcement gave no specific launch date while allowing Schwab to delay, change or withdraw support. The plan to add three tokens to Schwab Crypto concerns trading access through Schwab accounts; it does not establish that the firm uses Avalanche’s infrastructure.