Bank of America recently highlighted Avalanche’s subnetworks (subnets) as one of the key platforms driving the future of global settlements. According to the banking giant, the popularity of asset tokenization would benefit public blockchains like Avalanche as the market witnesses exponential growth in the near future.
Crypto influencer DeFi Made Here recently took to X (formerly Twitter) to share Bank of America’s projections for asset tokenization:
1/🧵 Recently, @BankofAmerica released a report predicting asset tokenization will exceed $16T in the next 5-15 years,
— DeFi Made Here (@DeFi_Made_Here) September 4, 2023
And cited @Avax Subnets as one of the key platforms driving the future of transferring value globally. pic.twitter.com/eSPkB90YGi
According to a recent report by Bank of America, traditional asset tokenization may reach a whopping $16 trillion over the next 5-15 years, transforming infrastructure and markets along the way. Given that Avalanche enables the creation of private permissioned and customizable subnets, the report stated that the blockchain would benefit from TradFi’s participation in the digital asset ecosystem.
DeFi Made Here told their followers that Bank of America’s bullish sentiment for subnets instead of Layer 2s stemmed from the degree of customization available for subnets. While L2s were a great scaling solution, they were also general-purpose chains that lacked the ability to adapt to evolving crypto projects.
However, Subnets allowed fine-tuning to meet specific requirements of different crypto projects, which gave the user full control over nearly all activities on the chain. Subnets also minimized bad maximal extractable value (MEV) and internalized good MEV. Avalanche subnets are reportedly one of the best underlying technologies.
Speaking on the versatility of Avalanche subnets, the crypto influencer stated:
The design of Avalanche Subnets allows for a highly personalized set of validators, with the ability to define their governing rules. Developers might also launch entirely custom non-EVM virtual machines, including complete smart contract VMs such as MoveVM or SolanaVM.
Avalanche’s subnets also offer sub-seconds and immutable finality with more than 110,000 transactions per second, faster than existing layer 2s like Solana and Sei. Bank of America’s optimism for Avalanche came at a crucial time, following the 95% decline in its total value locked since the last bull market.
