#Subnets.
What is a subnet?
A Subnet, or Subnetwork, is a dynamic set of validators working together to achieve consensus on the state of a set of blockchains. Each blockchain is validated by exactly one Subnet. A Subnet can validate arbitrarily many blockchains. A node may be a member of arbitrarily many Subnets.
Regulatory compliance is the #1st factor for adoption, it's make or break. Subnets allow for customised parameters, control of validators, regulatory control, centralization/ decentralization. Subnets are a dream for institutions who want to build their own network powered by most powerful blockchain avalanche. They can built their own, controlled private/ public networks running on the avalanche consensus, and they control how it is optimised, the base/gas token what to do with gas, tokenomics, distribution etc. I don't think most people really understand the scale of subnets quite yet.
In the future there will be application specific subnets that is game specific, supply chain network, DeFi network, privacy focus network, Traditional finance network, storage optimized subnets, literally endless use cases.
At the same time institutional adoption is incredibly over rated. Avax can get plenty of it. Web3 is where the money is and avax seems like the best platform building your web 3 applications. The finality time is super important here and avax being so fast means you can have dapps that feel like regular websites. It also is the only ETH challenger that isn't making a decentralization trade off. So yes that's a big part of it.
In addition to that scalability and super low gas fees. Plus it doesn't hurt that it's backed by Cornell.
Final Thought
The only way to future-proof adoption is to scale horizontally with vertically powerful segments. That enables teams to deploy their applications in an interoperable network while securing their future growth and guaranteeing fast and cheap interactions for their users on a chain tailored for their needs.