Avalanche Foundation Bets Big on AVAX in Bold Treasury Gambit

Avalanche Foundation, the non-profit organization behind the Layer 1 blockchain, is in advanced discussions to raise approximately $1 billion to establish two U.S. crypto treasury companies, according to a report by The Block. The foundation plans to deploy the funds to acquire AVAX tokens at a discounted price from the treasury companies, which will be created through private investments and a special purpose acquisition vehicle (SPAC) deal. One of the deals is led by Hivemind Capital with advisory support from Anthony Scaramucci, founder of SkyBridge Capital, and is expected to close by the end of September. The second deal, backed by Dragonfly Capital, also targets $500 million and is projected to be finalized in October. The foundation aims to finalize both transactions in the coming weeks, further signaling its commitment to leveraging AVAX as a core asset in its treasury strategy.

The initiative aligns with a broader industry trend of digital asset treasuries (DATs), where companies increasingly acquire publicly listed entities to transform them into crypto-focused vehicles. For instance, Nasdaq-listed Asset Entities recently secured shareholder approval to merge with Strive Enterprises, a move that will convert the former into a bitcoin-focused DAT. The Avalanche Foundation’s plan reflects a similar strategy, using the capital to strengthen its AVAX position and bolster long-term value. This approach also highlights the growing appeal of blockchain-based treasuries as a means of capital preservation and appreciation in a volatile crypto market.

In parallel, AVAX has shown signs of sustained bullish momentum, breaking free from a 213-day consolidation period. The token's price rose 3.6% in the past 24 hours to $26.30, with analysts forecasting a potential 30% upside as on-chain activity surges to a 20-month high. On-chain metrics, including weekly transactions and decentralized exchange (DEX) volumes, have reached significant levels, with DEX volumes exceeding $3 billion and transactions hitting 13.3 million in August. These figures suggest increasing network adoption and liquidity, reinforcing the narrative of a broader breakout in AVAX’s price trajectory.

Avalanche’s Real World Assets (RWA) segment is also gaining traction, with the total RWA value on the network reaching $305 million—a 57% increase over the past month. Stablecoin market capitalization on the network has also climbed to $2.68 billion, reflecting deeper liquidity integration and broader institutional and retail participation. Analysts highlight that these developments are not only beneficial for AVAX’s technical structure but also contribute to a more robust ecosystem that bridges traditional assets with decentralized finance (DeFi). With over 7,700 RWA holders and more than 3.4 million stablecoin holders, the network is experiencing a constructive shift in both institutional and retail engagement.

The technical outlook for AVAX appears equally favorable, with key resistance levels at $27–$28 and potential targets at $32, $36, and beyond. Analysts have noted a rising triangle pattern on the weekly chart, with a clean break above $27 signaling renewed bullish momentum. If AVAX maintains its upward trajectory and closes above these levels, it could pave the way for a move toward the mid-$40s, driven by strong on-chain fundamentals and institutional adoption. With Avalanche’s foundation actively building out its treasury strategy and the token experiencing both structural and on-chain strength, the market is closely watching for further confirmation of its breakout potential.