Avalanche’s DeFi TVL Surges 37% on Octane Upgrade as AVAX Gains 9%

Avalanche’s (AVAX) ecosystem has seen a significant surge in decentralized finance (DeFi) activity, driven by the recent Octane upgrade, which optimized transaction speeds, lowered fees, and enhanced user interfaces. Total value locked (TVL) in the DeFi segment rose 37% quarter-on-quarter to $1.5 billion. By late May 2025, USD-denominated TVL reached $2.2 billion, while AVAX-based TVL exceeded 70 million tokens. Concurrently, daily active addresses and transactions on Avalanche’s C-Chain and Layer 1 subnets increased by 210.4% and 169.91%, averaging 519,000 addresses and 10.1 million transactions per day [1]. The network’s improvements have attracted both users and developers, with capital allocation and project engagement rising across DeFi, gaming, and enterprise applications.

The AVAX token has shown upward momentum, trading at $27 as of July 2025, following a 9% 24-hour gain and a 4% rise over seven days. On-chain data indicates the token is testing a critical descending trendline established since late 2021. A breakout above this resistance level could trigger a significant rally. Chart analyst Smith notes that if volume supports the movement, AVAX could climb toward $140—a nearly eightfold increase from current levels [2]. This scenario hinges on sustained buyer activity at key support levels, as sellers defend the $27 threshold to prevent a retracement. While the $140 target remains speculative, the token’s price consolidation suggests growing confidence among traders amid broader altcoin season dynamics.

The ecosystem’s growth aligns with increasing interest in scalable, cost-efficient blockchain networks. Avalanche’s ability to maintain high transaction throughput and low fees positions it as a competitive alternative to Ethereum, particularly for projects prioritizing scalability. Analysts highlight that rising TVL and active user metrics reflect a shift from speculative interest to substantive utility within the ecosystem. However, the path to $140 depends on continued innovation, network upgrades, and favorable market sentiment toward altcoins. Traders are closely monitoring technical indicators and volume patterns to assess the likelihood of a sustained upward trend.

Source: [1] [title1Avalanche’s DeFi Activity Surges Post-Octane Upgrade] [url1https://cryptopotato.com/avax-on-fire-traders-target-140-as-avalanche-defi-heats-up/] [2] [title2AVAX Price Analysis and $140 Target Forecast] [url2https://cryptopotato.com/avax-on-fire-traders-target-140-as-avalanche-defi-heats-up/]