Avalon (AVL) Rallies 36% as Institutional Bitcoin Lending Product Debuts

AVL, the governance token of the Bitcoin decentralized finance (DeFi) lending platform Avalon Labs, has increased by double digits in the past few hours following the unveiling of the network’s institutional Bitcoin lending product.

According to data from CoinMarketCap, the announcement of the new product spurred a 36% spike in the price of AVL within 12 hours. The cryptocurrency’s value rose from $0.198 to $0.271, with a 24-hour trading volume of $48.29 million. 

At the time of writing, AVL was changing hands at $0.257, registering a 24-hour uptick of 27.3%. The asset’s market cap is also up 27% to $41.6 million. 

Avalon Unveils Bitcoin Lending Product

Although Avalon Labs was founded in March 2024 by a core team of six, AVL went live in February 2025. The network has evolved from just a Bitcoin DeFi lending protocol to issuing a Bitcoin-backed stablecoin and building the first fixed-borrow rate lending model in crypto.

The latest product is an overcollateralized, on-chain credit facility with stable rates, flexible terms, and leading partners. Avalon said it is unlocking liquidity for Bitcoin-holding institutions in a scalable, secure, and transparent way.

We’re proud to launch our institutional Bitcoin lending product – an overcollateralized, on-chain credit facility built for scale, security, and transparency.

With stable rates, flexible terms, and top partners onboard, we’re unlocking liquidity for BTC-holding institutions.… pic.twitter.com/F0zMETazsD

— Avalon Labs 🎩🔮 (@avalonfinance_) April 10, 2025

Avalon Labs’ Growth in a Year

Following its deployment in early 2024, Avalon Labs witnessed significant growth and development. By April 2024, the protocol had become the largest DeFi lending market for Bitcoin-native assets, and in August, it introduced its fixed-rate borrowing system.

Avalon deployed the first Bitcoin-backed stablecoin, USDa, by November, and by the end of the year, the asset had climbed to the top two collateralized debt positions (CDPs) on the DeFi total value locked (TVL) aggregator, DeFiLlama. Avalon Labs has expanded to more than 20 public chains and supports over 50 isolated lending markets, with a TVL surpassing $2 billion.

USDa, which will play a huge role in Avalon’s institutional Bitcoin lending product, has also recorded a remarkable growth rate since November. Launched with a TVL of $25 million, the stablecoin’s locked value skyrocketed by 1,900% to $500 million within a month. The asset now has about 127,000 users and generates at least $23 million in annual revenue – Avalon said this enables the steady offering of a 15% annual percentage yield to stakedUSDa (sUSDa) holders.

What Does The Future Hold For Avalon?

In Avalon Labs’ 2025 roadmap, the protocol revealed that its most important mission for this year is to bring Bitcoin-backed financial products into the real world, lower entry barriers, and onboard more participants into the Bitcoin ecosystem. 

While AVL and USDa remain central to the Avalon ecosystem, the team intends to expand the stablecoin’s real-world utility and recognize it as a payment method within the broader financial system. To do this, Avalon Labs will attain legitimacy and compliance by obtaining licenses in select companies and regions.

Nevertheless, the lending protocol is working towards onboarding more institutional clients into its fixed-borrow rate system and providing a banking-grade lending product to attract more capital to the Bitcoin ecosystem. Plans to launch a Bitcoin-backed public debt fund are still in the works, but Avalon wants to ensure this product thrives under an appropriate regulatory framework.

The post Avalon (AVL) Rallies 36% as Institutional Bitcoin Lending Product Debuts appeared first on Cointab.