What Avalanche’s latest partnership means for AVAX prices

Journalist

Posted: November 18, 2023

• Investment firm Republic will launch its new tokenized security on Avalanche 
• Failing to react to the news, AVAX’s price has declined by almost 15% in the past 24 hours.

Leading open-source blockchain Avalanche [AVAX] has been selected as the platform upon which investment firm Republic will launch its Republic Note. 

Republic is on a mission to democratize private market investing.

Now, @joinrepublic has chosen Avalanche for the launch of its profit-sharing digital asset, the Republic Note. https://t.co/8Un853rWGh

— Avalanche 🔺 (@avax) November 17, 2023

Republic Note is a revenue-sharing tokenized security that will provide holders with exposure to Republic’s portfolio of investments. This includes companies such as Web3 firms Avalanche, DappRadar, and Dapper Labs.

Described as a “digital asset backed by an evergreen private equity portfolio” on the company’s website, the price per Republic Note was listed at $0.36.

Prior to its listing on exchanges, around 372 million Republic Notes will be in circulation. Its total supply is capped at 800 million.

According to the security’s whitepaper, holders of the digital asset are entitled to payouts (made in USD Coin) from the dividend pool whenever it hits $2 million, a threshold that the Republic management can adjust.

In the announcement blog post, Republic’s president Andrew Durgee noted that the decision to go with Avalanche was borne out of the fact that the investment firm requires the blockchain network to “reach and scale with a global audience of investors.” 

AVAX shed gains

On 16th November, AVAX witnessed a 14% intraday price rally. This was after investment banking giant JP Morgan announced that its blockchain arm Onyx collaborated with Apollo Global to launch a proof-of-concept with Avalanche blockchain.

However, despite the news around Republic Note, the last 24 hours have been marked by a price decline. Witnessing a 12% devaluation, AVAX ranked as the crypto asset with the second-highest losses in the last 24 hours, according to data from CoinMarketCap.

Source: CoinMarketCap

AMBCrypto made an assessment of AVAX’s price movement on a 12-hour chart. The analysis revealed that the price decline occurred due to the drop in capital inflow into the alt’s spot market.

Its Chaikin Money Flow (CMF) trended downward at press time. CMF measures the token’s buying and selling pressure over a specified period.

The steady decline of this indicator signaled increased liquidity exit from the AVAX spot market. The token’s CMF was 0.16 at press time.

Realistic or not, here’s AVAX’s market cap in BTC terms

Interestingly, while the fund inflow into the AVAX market declined at press time, the alt’s key momentum indicators showed that market participants still favored accumulation over distribution.

The token’s key momentum indicators Relative Strength Index and Money Flow Index, were 65.04 and 67.33 at press time. This showed that buying continued to outpace selling. 

Source: AVAX/USDT on TradingView