Animoca Brands has announced a strategic investment in Avalanche.
The move aims at promoting the adoption of projects built on Avalanche.
Could the strategic investment boost AVAX price?
The Avalanche (AVAX) price has slipped below $10 as cryptocurrencies experience sell-off pressure.
AVAX could extend the decline to below $9, but is the announcement that Animoca Brands has partnered with Ava Labs to help expand adoption across the Middle East and Asia bullish for the token?
Animoca Brands partners with Ava Labs
Animoca Brands is one of the most influential entities in the web3 ecosystem, boasting notable traction globally and particularly in the East.
The announcement shared today, March 19, revealed that Animoca has signed a strategic partnership with Ava Labs, a company focused on advancing the Avalanche blockchain ecosystem.
While Animoca Brands did not disclose the amount invested, its leadership has termed the investment as a major one.
The focus will be on the deployment of capital in AVAX-based projects, as well as supporting product integrations and offering advisory support.
The Ava Labs team noted that Animoca brings a portfolio of over 600 investments and deep expertise across real-world assets, gaming, and digital identity.
With the collaboration, Ava Labs will target expansion across Asia and the Middle East.
“Avalanche combines scalable subnet architecture with EVM compatibility, which makes it particularly well suited for sovereign and institutional deployments — areas where we see growing demand globally,” said Omar Elassar, Animoca’s head of global strategic partnerships and managing director for the Middle East.
Avalanche RWA and DeFi markets
Avalanche (AVAX) ranks 22nd among the largest cryptocurrencies by market capitalisation, with a valuation of about $4 billion as of March 19, 2026.
However, the layer-1 network remains significantly smaller than leading altcoins in terms of overall market size and ecosystem activity.
Data indicates that Avalanche lags major chains across decentralised finance and real-world asset (RWA) adoption.
According to RWA.xyz, the total value of tokenised assets on Avalanche stands at roughly $1.3 billion, compared with about $15.7 billion on Ethereum.
Similarly, Avalanche’s DeFi total value locked (TVL) is around $1.9 billion, well below Ethereum’s $136 billion and the more than $18 billion recorded on Solana.
Despite this gap, the network’s on-chain finance footprint is showing signs of expansion.
The backing from Animoca Brands could help accelerate growth, while the AVAX token may benefit from further integrations and ecosystem adoption.
AVAX price outlook
AVAX trades around $9.41, down 3% in the past 24 hours.
From a technical perspective, AVAX is trading in a broad downtrend trajectory, with prices constrained within a tightening Bollinger Bands formation.
Currently, AVAX is near the technical indicator’s middle line after recent rejections from the upper band.
Meanwhile, the relative strength index (RSI) has flipped downward and hovers near 48 as bulls risk losing the neutral outlook to the momentum.
However, while sellers show resolve, they are not dominant.
If AVAX holds above $9, a broader recovery could allow for a breakout above $10 and a potential short-term retest of year-to-date highs near $15.
On the downside, failure to defend support zones could drag AVAX to lows of $8.20.
