Institutional interest, treasury growth, and stablecoin adoption position Avalanche for medium-term recovery despite macro risks.
Avalanche (AVAX) had a booming September, with DEX trading volume hitting a three-year high and a billion-dollar treasury deal. There is also growing interest from ETF issuers in AVAX.
At the same time, technical signals indicate that AVAX is at a critical level for a potential breakout if it can maintain key support. This picture opens up expectations for a new growth cycle of Avalanche in the medium term.
This past September, the Avalanche (AVAX) ecosystem recorded impressive numbers after a period of stagnation. According to official statistics, DEX trading volume on Avalanche reached $17.4 billion, the highest level in the last three years.
Data from DefiLlama also shows that Avalanche currently ranks as the 7th largest platform by DEX trading volume in the past 30 days.
In the last 24 hours alone, DEX volume on Avalanche reached nearly $690 million. This figure confirms liquidity returns and demonstrates user confidence in the chain’s DeFi infrastructure.
“Avalanche doesn’t slow down, if anything, we’ve got our pedal to the metal” an optimistic X user shared.
Another highlight is the announcement that Avalanche Treasury Co. (AVAT) entered a $675 million merger deal with Mountain Lake Acquisition Corp., to hold over $1 billion worth of AVAX in its treasury after its expected Nasdaq listing in Q1 2026.
This is considered a strategic move to institutionalize capital inflows into the Avalanche ecosystem. It paves the way for strong investments in RWA, stablecoins, and payment infrastructure.
At the same time, as reported by BeInCrypto, Avalanche is expanding stablecoin payment adoption in South Korea and Japan, increasing the blockchain’s real-world use cases. On the traditional finance front, giants such as VanEck, Grayscale, and most recently Bitwise have filed applications for AVAX ETFs, reflecting growing institutional interest in the token.
Thus, in just one month, Avalanche has converged three crucial factors: booming on-chain liquidity, a large-scale strategic treasury, Anthony Scaramucci’s investment, and clear signs of institutional capital interest. This forms the foundation for AVAX to regain its position in the crypto market.
At the time of writing, data from BeInCrypto shows AVAX is trading around $30.62, up 2% in the past 24 hours and nearly 30% in the past month.
According to an observation from a trader on X, the support level is $23.06, and the resistance level is $36.14. Based on RSI, MACD, and Bollinger Bands indicators, the overall tendency points towards a bearish trend.
Another analyst on X noted that AVAX has just completed a “resistance flip” — where a previous resistance zone becomes support. The key price level is now $27: as long as AVAX holds above this threshold, short-term and medium-term uptrends remain intact.
“This has been an outperformer lately, so I have to assume it will continue to outperform for the time being,” the analyst commented.
However, risks cannot be ignored. On the one hand, large-scale deals like AVAT require time to materialize. If the process is delayed or traditional markets face macroeconomic turbulence, AVAX may face downward pressure.
On the other hand, FOMO sentiment following ETF and stablecoin payment news may already be partly priced in, making the $27 support level all the more crucial.
