Schwab Highlights Avalanche’s Institutional Edge Despite Shrinking Fees

Charles Schwab analysts argue that Avalanche’s focus on real-world assets and institutional use cases could drive a stronger valuation for AVAX. Jim Ferraioli’s research points to the network’s customizable infrastructure, citing stablecoin issuance, lending, asset management and liquid staking as key activity drivers.

Data from September 7 placed Avalanche fifth among smart-contract chains with $3.4 billion in locked value. Tokenomics scored above average thanks to a 720-million hard cap, fee-burning mechanics and staking rewards.

Yet the report flags a steady drop in monthly transaction fees since 2023 and warns that growth in private subnets may not translate into equivalent demand for the main network or AVAX itself. The market-cap-to-fees ratio has swung between 200x and 1,200x over the past three years.

Based on information from cryptonews.net