Avalanche’s AVAX token recorded a sharp upswing on Tuesday, rallying more than 10% to trade above $33 despite a broader downturn across the cryptocurrency market.
The move has pushed AVAX nearly 22% higher from its recent local low of $29, with institutional interest and ecosystem growth playing a central role in driving momentum for the layer-1 blockchain.
Institutional demand strengthens outlook
The Avalanche Foundation has ramped up efforts to secure institutional capital, unveiling a series of treasury-building initiatives earlier this month.
In early September, the foundation revealed plans to raise $1 billion through two separate U.S.-based crypto treasury companies, which would allow them to purchase millions of AVAX tokens from reserves at discounted rates.
One of the vehicles, steered by Hivemind Capital and advised by Anthony Scaramucci, is seeking to raise $500 million via a Nasdaq-listed PIPE transaction. On Monday, AgriFORCE Growing Systems confirmed its rebrand to Avax One and announced plans to raise $550 million to construct a treasury centered on AVAX.
A second vehicle, involving Dragonfly Capital, is also targeting $500 million through a special purpose acquisition vehicle. Together, these efforts are expected to lock up significant amounts of AVAX, applying consistent upward pressure on the token’s price.
Institutional exposure to Avalanche has also expanded through new financial products. Sweden-based Vitune launched a crypto exchange-traded product (ETP) offering Finnish investors access to AVAX in February. VanEck followed with an application to launch an Avalanche ETF in March, while Grayscale recently filed to convert its Avalanche Trust into an ETF.
This institutional wave has helped fuel confidence in AVAX, keeping its rally intact even as most digital assets retraced in recent days.
Network growth adds fuel to rally
On-chain activity has also reinforced AVAX’s strength.
Avalanche’s Octane upgrade in April reduced C-Chain fees by 98%, spurring daily transactions to 1.4 million by the second quarter, a 493% increase compared with the prior quarter. Active wallet addresses rose 57% in the same period, reaching 46,397.
In late August, Avalanche led all blockchains in weekly transaction growth, recording a 66% jump to reach a record 2.22 million daily transactions. Although activity has since moderated, counts remain robust above 1.2 million transactions daily, according to Nansen.
The total value locked (TVL) on Avalanche has more than doubled since April, climbing from $1 billion to $2.23 billion by Tuesday. Protocols like Aave, with $515 million locked, have contributed significantly. Meanwhile, the stablecoin market cap on Avalanche has soared to $2.16 billion, marking an 81% increase over the past month, according to DefiLlama.
Rising TVL and stablecoin adoption underscore the blockchain’s expanding role in decentralized finance, improving liquidity and strengthening long-term utility.
Technical setup signals bullish continuation
From a charting perspective, AVAX appears to be forming a rounded bottom pattern on the daily timeframe — a traditional bullish reversal formation.
The token has been gradually building a U-shaped base since July, when it traded near $17. A 17% jump from Monday’s lows near $29, coupled with a more than 100% spike in trading volume, suggests increasing conviction among buyers.
This structure sets up two potential upside targets. The first lies near the neckline at $55, about 61% above current levels. If AVAX closes decisively above that price, a measured projection points to a longer-term target of $212, a potential 511% gain from today’s market value.
While such projections remain speculative, the combination of institutional inflows, strong on-chain activity, and technical momentum has positioned AVAX as a rare standout in a shaky crypto market.
