Avalanche C-Chain's Record-Breaking Daily Active Addresses and Implications for AVAX's Re-Rating

The Avalanche C-Chain has recently shattered expectations, with daily active addresses surging to an all-time high of 1,379,136 on January 13, 2026. This milestone, a stark departure from the previous range of 300,000–600,000, underscores a robust recovery in network activity and signals renewed institutional and retail engagement. Concurrently, daily transactions on the C-Chain grew by 153.6% year-over-year, averaging 4.2 million per day, while daily active addresses climbed by 379.6% to 380,000 in 2025. These metrics, coupled with a surge in on-chain volume approaching $1 trillion, position Avalanche as a critical player in the blockchain ecosystem.

Network Activity as a Leading Indicator

Historical data reveals a nuanced relationship between blockchain network activity and token valuation. A 2025 study found that a 10% increase in token price volatility correlates with a 3.96%–5.88% decrease in active addresses, as higher volatility encourages token retention over frequent trading. Conversely, tokens functioning as a medium of exchange-like stablecoins- see increased user engagement, stabilizing their market dynamics. For Avalanche, the C-Chain's surge in daily active addresses suggests a shift toward utility-driven adoption, where AVAX is increasingly used for transactions rather than speculative trading.

Empirical evidence from Ethereum-based tokens further supports this dynamic: peer-to-peer usage and exchange-related transactions positively correlate with token returns. However, imbalances in exchange inflows-such as high deposit activity-can signal bearish intentions. Avalanche's C-Chain, with 43.3% of its cumulative 937 million transactions occurring in 2025, demonstrates a healthy balance between on-chain utility and exchange activity, mitigating the risk of supply-side pressure.

NVT Ratio and Valuation Implications

The Network Value to Transactions (NVT) ratio, a metric comparing a blockchain's market cap to its transaction volume, is pivotal in assessing undervaluation or overvaluation. While specific NVT data for Avalanche's C-Chain in 2025 is unavailable, the network's transaction volume and market cap trends offer insights. By Q4 2025, Avalanche's market cap peaked at $8.52 billion in October 2025, despite a subsequent decline to $5.89 billion by January 2026. With a circulating supply of 430.96 million AVAX tokens, and on-chain fees exceeding 4.8 million AVAX in 2025, the C-Chain's transaction volume suggests a low NVT ratio relative to its market cap. A historically low NVT often indicates undervaluation, implying AVAX could be primed for a re-rating as network activity continues to outpace its current valuation.

Market Projections and Re-Rating Potential

Analysts project AVAX could reach $50 by Q4 2025 and $100 by 2027, driven by sustained on-chain growth and institutional adoption. The C-Chain's subnet architecture, which enables customizable blockchains for enterprises, further strengthens AVAX's utility and demand. Additionally, bullish technical indicators suggest upward momentum. While short-term volatility remains a risk, the interconnectivity of cryptocurrencies (with 86%–97% of price variations attributed to cross-market spillovers) means Avalanche's performance could benefit from broader market upswings.

Conclusion

Avalanche's record-breaking daily active addresses and surging transaction volume highlight a maturing ecosystem where AVAX is increasingly valued for its utility rather than speculation. The interplay between network activity, NVT dynamics, and market fundamentals positions AVAX as a compelling candidate for re-rating. As the C-Chain continues to process over 400 million transactions and approach $1 trillion in on-chain volume, investors should closely monitor AVAX's ability to convert this activity into sustained price appreciation.