A $1 Billion Bet: Why Avalanche’s Move Could Reshape Crypto’s Future

Avalanche Foundation is reportedly planning to establish a $1 billion AVAX treasury in the United States, as reported by the Financial Times. This strategic move signals a broader effort to consolidate the AVAX ecosystem and enhance institutional participation in the network. The initiative is expected to involve the formation of dedicated treasury firms in the U.S., positioning Avalanche as a more viable option for institutional-grade blockchain investment and asset management.

This development comes amid a period of strong growth for Avalanche, particularly in the Real World Assets (RWA) segment. According to recent data, the total value of RWAs on the Avalanche network has increased by 57% to $305 million in the past month. Additionally, the stablecoin market cap on Avalanche has reached $2.68 billion, reflecting a 30% increase and indicating a steady integration of liquidity into the ecosystem. Analyst Coop notes that RWA holders have now exceeded 7,700, while stablecoin holders number over 3.4 million, suggesting a growing base of both institutional and retail participants.

The technical performance of AVAX has also shown significant strength. The token has recently broken free of a 213-day consolidation phase, with analysts eyeing a potential price surge to the $32–$36 range. The weekly chart forms a rising triangle structure below $27, with higher lows suggesting that buying pressure is building. A breakout above $27 could open the path to $32 and, potentially, $45 if momentum is sustained. Analysts such as EllioTrades and CryptoBullet have highlighted the constructive nature of the chart patterns, noting that a sustained move above key resistance levels could lead to a retesting of the mid-$40s.

On-chain activity for Avalanche has also reached a 20-month high, with weekly transactions reaching 13.3 million and decentralized exchange (DEX) volumes surpassing $3 billion. Analyst Crypto Rand observed that such spikes in on-chain activity often precede stronger market moves, as increased network demand aligns with bullish technical indicators. The growing transaction volume and stablecoin adoption signal a broader ecosystem expansion, reinforcing the potential for AVAX to continue its upward trajectory.

In terms of market positioning, Avalanche has outperformed major competitors such as Ethereum and Solana in terms of capital inflows. Avalanche led all chains in weekly net inflows with over $111 million entering the ecosystem, a sharp contrast to the outflows seen on other platforms. This inflow of liquidity arrives as AVAX reclaims its 200-day EMA, a technical indicator that often marks the transition from bearish to bullish phases. The alignment of strong technical recovery with increased liquidity suggests that Avalanche is well-positioned for a potential continuation of its bullish trend.

The broader market sentiment around AVAX has also shifted to a more optimistic outlook. Analyst Skrrt has suggested that a "massive repricing" of AVAX could be imminent, driven by the growing adoption and capital flows into the Avalanche ecosystem. While the short-term focus remains on the $27 resistance level and the $30 psychological threshold, the long-term narrative suggests that AVAX has the momentum to retest its former $50 highs, provided the current trend of ecosystem growth and capital inflows continues.

Financial Times

Coop via X

EllioTrades via X

Crypto Rand via X

Nicolas Lemaitre via X

Skrrt via X