Avalanche's DEX Volume Surges, Treasury Deal, and ETF Interest Boost Recovery Outlook

Avalanche (AVAX) DEX volume reached a three-year high in September, hitting $17.4 billion. The chain also saw a $675 million merger deal and growing interest from ETF issuers. Technical signals indicate a critical level for a potential breakout if AVAX maintains key support. This sets the stage for a new growth cycle for Avalanche in the medium term.

Avalanche (AVAX) has seen a significant surge in its decentralized exchange (DEX) volume, reaching a three-year high of $17.4 billion in September. This growth coincides with a $675 million merger deal and increasing interest from ETF issuers, setting the stage for potential medium-term growth. Technical signals also indicate a critical level for a potential breakout if AVAX maintains key support.

The DEX volume milestone marks a substantial increase in the usage of Avalanche's blockchain for trading. This growth is particularly notable given the competitive landscape of the cryptocurrency market, where other networks such as Ethereum and Solana have also seen significant activity. The high volume suggests that Avalanche's ecosystem is gaining traction among traders and investors.

The $675 million merger deal between Avalanche Treasury Co. and Mountain Lake Acquisition Corp. is a significant development for the AVAX ecosystem. This transaction, valued at over $675 million, is one of the largest crypto-aligned Special Purpose Acquisition Company (SPAC) transactions to date Avalanche Gains Momentum As New Treasury Firm Eyes $1 Billion AVAX Purchase^[1]. The merger will create a new public company, Avalanche Treasury Co. (AVAT), which aims to acquire more than $1 billion worth of AVAX over time. AVAT plans to deploy capital into protocol investments, enterprise partnerships, and validator infrastructure, positioning itself as a leading public vehicle for institutional exposure to the cryptocurrency.

Additionally, the growing interest from ETF issuers indicates a broader acceptance and adoption of AVAX. ETFs provide a more accessible entry point for institutional investors who may be hesitant to directly invest in cryptocurrencies. This trend is part of a broader shift in the crypto market, where traditional financial institutions are increasingly exploring ways to integrate digital assets into their investment strategies.

Technical analysis of AVAX suggests that the token is nearing a critical level for a potential breakout. The token has bounced from $2.60 and is nearing a breakout above $3.00, with resistance at $3.60. This movement is supported by whale accumulation, indicating a rise in institutional transactions. Over 1.3 billion XRP tokens were moved in eight hours, suggesting a significant increase in institutional involvement in the market Key facts: XRP has risen over 3% to $2.98, boosted by whale accumulation. It bounced from $2.60 and is nearing a breakout above $3.00, with resistance at $3.60.^[3].

The CME Group's upcoming launch of XRP futures and options on October 16, 2025, with 24/7 trading expected to start in early 2026, also contributes to the positive sentiment around AVAX. This development is likely to further boost the liquidity and credibility of the AVAX token, attracting more institutional investors.

In conclusion, the combination of high DEX volume, a significant merger deal, growing ETF interest, and positive technical signals positions Avalanche for a new growth cycle in the medium term. Investors and financial professionals should closely monitor these developments to capitalize on potential opportunities in the AVAX ecosystem.