The Avalanche network has seen a significant rise in daily transactions and institutional activity, strengthening AVAX’s fundamentals ahead of the anticipated altcoin season in 2025.
Key Highlights
- Daily transactions on the Avalanche network have increased by over 275% since May 2025.
- AVAX gains momentum from real-world asset (RWA) tokenization, led by institutional investors.
- AVAX is moving in a bullish continuation pattern, with potential to break above $25.
AVAX – Current Market Overview
With a fully diluted market cap of approximately $10 billion and a 24-hour trading volume of around $565 million, AVAX remains in focus for both institutional and retail investors. The altcoin rose over 2% on Tuesday, reaching ~$21.92.
AVAX’s upward movement comes amid a decline in Bitcoin dominance, forming a macro reversal pattern. This trend often signals incoming liquidity flow into altcoins — commonly referred to as “altcoin season.”
On-Chain Activity and Institutional Engagement
Since May 2025, Avalanche network transactions have surged from around 200,000 to over 759,000 daily. This represents a 275%+ increase, signaling renewed interest and utility.
Avalanche has established itself as a top platform for real-world asset tokenization due to its speed, scalability, and low fees. According to Santiment data, Avalanche is the second most active blockchain in the RWA space after Chainlink.
Technical Analysis and Short-Term Forecast
On the 4-hour chart, AVAX broke out of a falling wedge — a bullish pattern that typically precedes price increases. The MACD indicator also showed a bullish crossover above the zero line, reinforcing positive technical momentum.
If AVAX closes above $25, the next short-term target is around $35, aligning with resistance zones from early 2024.
Long-Term AVAX Forecast
Beyond the short-term outlook, Avalanche’s fundamentals remain strong. The network continues to expand, fueled by a growing ecosystem of DeFi projects, NFT marketplaces, and RWA initiatives.
Factors Supporting Long-Term Growth:
- Institutional Trust: Involvement from regulated institutions and partnerships boosts the network’s legitimacy.
- Technological Advancements: Avalanche’s Subnets provide developers with flexibility, scalability, and autonomy.
- Regulatory Readiness: Avalanche adapts to evolving regulations, offering a suitable environment for enterprise adoption.
If these trends continue, AVAX could reach new highs. A long-term price target for 2025–2026 is between $75 and $100, depending on market conditions, network progress, and the broader crypto landscape.
Risks and Challenges
- Competition: Networks like Solana, Ethereum, and Base offer similar capabilities.
- RWA Sector Dependency: Weak development or regulatory hurdles in the RWA space could limit growth.
- Market Volatility: AVAX remains sensitive to broad market corrections.
Conclusion:
AVAX has strong support from both fundamental and technical perspectives in the short and long term. A breakout above $25 could trigger a new growth phase toward $35. If institutional involvement and RWA tokenization efforts continue, the long-term price could exceed $75 within the next 12–18 months.
Frequently Asked Questions
Find answers to the most common questions below.
Technical indicators suggest that AVAX could break above $25 in the short term, with $35 as the next resistance zone.
If current growth trends continue, AVAX could reach $75 to $100 by 2026, especially with sustained institutional support.
AVAX faces competition from other blockchains, dependency on RWA growth, and exposure to overall crypto market volatility.
This article is for general informational purposes only and is not intended to be, and should not be construed as, legal or investment advice. Crypto-assets are highly volatile, so only invest funds that you are willing to lose and use your own research and risk management.
