Highlights
- Littio shifts Yield Pots to AVAX, targeting U.S. Treasury access and faster transactions.
- Avalanche Foundation launches a $50M initiative for real-world asset development.
- AVAX bullish pattern predicts a 138.74% potential price surge to near $50.
Littio Moves to Avalanche for Yield Pots
Littio, a Colombian neobank, has announced that its Yield Pots platform will no longer operate on Ethereum (ETH) but on Avalanche (AVAX). This strategic move is aimed at meeting the growing appetite for U.S. Treasury bills and enhancing transaction efficiency for its customers. As more users and projects migrate to the Avalanche blockchain, this could lead to a significant upsurge in AVAX price.
Key Reasons for the Shift
In light of the increasing demand for U.S. Treasury bills, Littio has decided to transfer its Yield Pots platform from Ethereum to Avalanche. Yield Pots allows customers to earn interest on their U.S. Dollar deposits through stablecoin-backed products. According to Littio, expanding and improving transaction processes was necessary due to increased user traffic, prompting the change.
Littio particularly cited Avalanche’s low transaction fees and faster settlement times as the primary reasons for this transition. This change will enhance Littio’s ability to provide efficient services and facilitate easier access to yield-generating products linked to real-world assets (RWAs), including U.S. Treasury bills.
Role of OpenTrade in the Transition
Littio’s partnership with OpenTrade, a London-based company, plays a crucial role in this transition. OpenTrade offers yield-generation products that utilize stablecoins and tokenized RWAs such as U.S. Treasury bills. This tokenization allows investors to gain exposure to off-chain assets via blockchain technology.
Jeff Handler, the Chief Commercial Officer of OpenTrade, stated that Littio is currently the only Latin American neobank utilizing OpenTrade’s vaults. However, there are plans to onboard additional clients before the year ends, reflecting the growing need for USD-linked services, such as payments and bank accounts, across Latin America.
Avalanche’s Growing RWA Ecosystem
With its low-cost and high-speed blockchain, Avalanche has emerged as a leading platform for real-world asset tokenization. The Avalanche Foundation has bolstered this initiative by launching a $50 million program to support RWA development on its network. Littio’s migration to Avalanche signifies a positive step for the platform, showcasing its capability to host institutional-grade financial products.
Morgan Krupetsky, Head of Institutions and Capital Markets at Ava Labs, noted that Avalanche is enabling the unbanked population in Latin America to access efficient and secure financial services. By transitioning to Avalanche, Littio aims to enhance its offerings, particularly for clients in regions with high inflation and currency devaluation.
AVAX Price Outlook Amid Increased Adoption
With Littio’s move to Avalanche, AVAX could experience positive price movement fueled by rising demand for its blockchain. Since mid-2023, AVAX has demonstrated a bullish pattern characterized by higher lows and a strong ascending support line. This trend suggests increasing buyer confidence following each pullback.
As of now, AVAX is trading at $26.16, reflecting a 0.30% decline from the intra-day high. Analysts believe that if AVAX can maintain its momentum above key support levels, it could see significant upside potential. Projections indicate that the price may rise by up to 138.74%, potentially approaching $50 if the bullish trend continues.
This development aligns with Avalanche’s growing traction across multiple sectors. With fintech platforms like Littio adopting Avalanche, AVAX is likely to attract further investor attention, bolstering its price in the process.
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