Avalanche and Arbitrum One Capture Significant Share of Tokenized Stock Market

Recent data from Token Terminal reveals that Avalanche and Arbitrum One now account for about 12.5% of the total on-chain tokenized stock market capitalization, challenging the dominance of established networks like BNB Chain, Ethereum, and Solana. This marks a notable shift in the landscape, as these mid-tier chains have collectively amassed a tokenized equity value of $292 million over the past year.

Market Share Breakdown

As of July 16, 2026, the total market cap for tokenized stocks reached a record $2.3 billion. BNB Chain remains the leader with 35.4% of the market, followed by Ethereum at 28.0% and Solana at 21.5%. Avalanche holds 6.3%, while Arbitrum One is close behind at 6.2%. The competition between Avalanche and Arbitrum is particularly tight, with a single large issuance on either chain potentially flipping their rankings.

Factors Behind the Shift

Avalanche's architecture, which supports customizable subnets, allows issuers to create tailored environments for regulated assets, appealing to firms needing to comply with securities regulations. In contrast, Arbitrum One benefits from being an Ethereum Layer 2 network, offering lower gas fees and faster transaction finality while inheriting Ethereum's security features.

The Continuing Strength of Major Chains

Despite the emergence of smaller chains, the dominant trio of BNB Chain, Ethereum, and Solana still commands approximately 85% of the market. BNB Chain's substantial user base and the Binance ecosystem's influence, Ethereum's unmatched developer ecosystem, and Solana's high throughput continue to solidify their positions in the tokenized stock market.

Implications for the Future

The fragmentation of the tokenized equity landscape poses challenges, as different chains represent distinct assets with varying liquidity profiles. However, chains like Avalanche, which demonstrate robust compliance capabilities, may gain a structural advantage in a more regulated environment.

New Developments in Tokenized Stock Trading

• Hyperliquid has integrated Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to support tokenized US equities.
• xStocks are 1:1 backed tokenized versions of US stocks and ETFs, allowing users to trade them on Hyperliquid.
• At least 10 xStocks tickers, including AAPLx and NVDAx, have registered for spot trading on Hyperliquid.
• Each xStocks token represents one share of the underlying asset, ensuring a 1:1 backing.
• The CCIP integration has been operational since July 2025, enhancing Hyperliquid's trading capabilities.

New Developments in Avalanche Treasury

Avalanche Treasury Corporation (AVAT) has until February 2, 2027, to address two listing deficiencies on Nasdaq after its share price fell below the required thresholds. Currently, AVAT's share price is approximately $0.32, necessitating a tripling of its price to meet the $1 minimum bid requirement.

AVAT's market value of listed securities has also remained below $35 million for 33 consecutive business days. The company is exploring options such as a reverse stock split to meet compliance, although this alone may not suffice to address the market value deficiency.

AVAT emerged from a merger with Mountain Lake Acquisition Corp., valued at over $675 million, and holds more than 15 million AVAX tokens, including over 7.2 million staked tokens. The company aims to invest across the Avalanche ecosystem rather than solely accumulating AVAX.

This situation reflects broader challenges faced by newer crypto treasury companies amid a tough market environment, as seen with recent cancellations of significant treasury deals by other firms.