- Avalanche price has plunged 18% in a week, despite DEX trading volumes surging to $4.2 billion in just four days.
- Activity on Avalanche spiked due to institutional moves, resulting in a 20% growth in active addresses.
- Analysts point to a bullish divergence similar to Solana’s 2023 rally, hinting at a potential recovery to $44–$50 by year-end.
Avalanche (AVAX) price crashes 18% in a week despite DEX volumes surging to $4.2B. Institutional interest, ETF filings, and rising DeFi activity signal a possible bullish reversal.
The Avalanche price has dropped 18% in the past week and 9.6% in the last 24 hours, trading at $28.33 as of 1:16 a.m. EST, with a 15% surge in daily trading volume to $1.5 billion. The price drop occurs even as Avalanche network DEX volumes surge to $4.2 billion over the last four days.
AVAX DEX Volume Soars Amid Price Difficulties
Despite taking a brutal hit this week, a surprising story unfolded on the network’s decentralized exchanges (DEXes). Trading volumes exploded to $4.2 billion over just four days, signaling robust activity even as the token’s value tumbled.
Volumes kicked off at $800 million on September 22, then rocketed: $1.1 billion the next day, $1.2 billion on the 24th (a single-day record of $1.3 billion), and another $1.2 billion on the 25th.
Additionally, active addresses increased by 20% week-over-week, driven by low gas fees, averaging $0.02 per swap compared to Ethereum’s $1.50. Protocols like Trader Joe and Pangolin led the charge in DeFi trades, while Avalanche processed 15 million transactions, representing a 35% increase.
What’s Driving this DEX Volume Surge?
Institutional bets are pouring in. SkyBridge Capital, led by Anthony Scaramucci, launched a $300 million tokenization push on Avalanche earlier this year and raised $550 million for treasury funds last month.
Furthermore, AgriFORCE rebranded to AVAX Holdings on September 23, with an eye toward tokenized assets. A new subnet for real estate tokenization debuted on the 22nd, handling $150 million in trades right away.
The Fed’s 0.25% rate cut on September 18 played a role in this turn in the volume tide. The reduced interest rates unlocked $2.5 billion in DeFi liquidity across the network, drawing arbitrageurs to Avalanche’s efficient subnets.
AVAX Price is Catching Up to Peers
Compared to peers, the AVAX price lags. Solana dipped just 5% amid similar volume pops, thanks to stronger meme coin hype. However, analysts spot a bullish divergence here, identical to the one Solana exhibited in 2023 before its rally.
Bitwise’s AVAX ETF filing on September 20 boosts the odds to 65%, according to Bloomberg. Staking yields hit 8.2% with 120 million AVAX locked, and the team announced $10 million in subnet grants for AI and supply chain projects yesterday.
Price-wise, $26.63 support holds for now. A bounce above $30 could target $44, but a break below could mean a further drop to $22 by month-end.
The upcoming U.S. jobs data, scheduled for release on October 4, looms large, and weak numbers might extend the pain. Still, with 4,500 validators securing $4 billion in swaps flawlessly, Avalanche’s fundamentals shine. Volumes could double on ETF wins, and long-term targets could reach $50 by year-end if DeFi momentum persists.
