Avalanche’s ecosystem demonstrated significant growth and institutional confidence in September, marked by a major surge in decentralized exchange (DEX) activity and a landmark strategic treasury deal. These developments are strengthening the fundamental outlook for AVAX, drawing increased attention from traders and institutional investors alike.
Market Drivers and Immediate Effects
The Avalanche network saw remarkable on-chain activity in September, with DEX trading volume hitting $17.4 billion, a three-year high. This surge reflects deeper liquidity and growing user confidence in the chain’s DeFi infrastructure.
A key development fueling institutional interest is the planned creation of a massive ecosystem treasury. The Avalanche Treasury Co. (AVAT) has entered a merger deal valued at over $675 million with a Nasdaq-listed company, with the goal of holding over $1 billion worth of AVAX. This move is seen as a strategic step to institutionalize capital flows into the ecosystem. Furthermore, high-profile involvement from figures like Anthony Scaramucci through initiatives like AVAX One signals growing conviction among major financial players.
This institutional demand is also evident from the growing interest from ETF issuers. Firms like VanEck, Grayscale, and Bitwise have filed for spot AVAX ETFs, reflecting a trend of traditional finance seeking regulated exposure to the token.
Risks, Technical Levels and Upcoming Milestones
From a technical perspective, AVAX is trading at a critical juncture. Analysts highlight $27 to $30 as a crucial support zone that must hold to keep the short-term and medium-term uptrends intact. The immediate resistance to watch is the $35 to $36 area. A decisive daily close above $35 could open the path for a push toward $43, with some technical models pointing to longer-term targets near $47.
While the outlook is optimistic, certain risks and milestones need monitoring. The AVAT merger, targeting a Nasdaq listing in Q1 2026, is a key upcoming catalyst; any delays could impact momentum. Additionally, elevated open interest in the derivatives market, while supporting upside potential, can also amplify drawdowns during market-wide liquidations, so prudent risk management remains essential.
In summary, Avalanche is riding a wave of strong on-chain activity and institutional interest. The key for continued upward momentum will be its ability to maintain technical support and successfully execute on its strategic treasury plans.
