Avalanche’s Institutional Bid: Grayscale Files ETF as Network Activity Hits Record High

Avalanche (AVAX) has recorded 10.9 million transactions as of the latest on-chain data, signaling increased network activity and renewed investor interest in the cryptocurrency. This surge in usage has coincided with Grayscale Investments submitting a registration statement with the U.S. Securities and Exchange Commission (SEC) for the launch of the Grayscale Avalanche Trust. The trust is intended to track the price performance of AVAX and is being supported by Coinbase Custody as custodian and prime broker. This move is seen as a step toward greater institutional exposure and legitimacy for the AVAX token.

Grayscale filed an S-1 registration with the SEC, aiming to rebrand the Avalanche Trust into an exchange-traded fund (ETF) that could eventually be listed on Nasdaq. The company emphasized that no shares will be offered until the necessary regulatory approval is secured. The potential approval of such an ETF would align AVAX with Bitcoin and Ethereum, offering a regulated investment vehicle for institutional investors and enhancing market visibility. Analysts have noted that the filing reflects confidence in the long-term potential of the Avalanche blockchain, despite recent price fluctuations.

On-chain metrics show a positive trend for Avalanche’s ecosystem. Total Value Locked (TVL) in the network has reached an annual high of $2 billion, indicating increased user participation and capital deployment within Avalanche-based protocols. Additionally, the C-Chain has seen a surge in daily transactions, surpassing 2 million in a single day, a record since March 2024. This activity underscores growing adoption and liquidity, which may support further price appreciation if sustained.

AVAX’s price has remained below the key resistance level of $27 for over 100 days, consolidating in a symmetrical triangle pattern between $23.50 and $27. Analysts suggest that a breakout above $27 could trigger a rally toward $30–$32, with higher confidence if the move is supported by strong volume. The Relative Strength Index (RSI) has recently dipped below the neutral 50 level, indicating bearish momentum. However, if buyers manage to push the price above this level, it could signal a shift toward a bullish trend.

The market’s reaction to Grayscale’s filing has been mixed. While the news did not immediately spark a price rebound, it has reinforced AVAX’s position as a credible asset in the institutional investment space. Analysts project that if the on-chain activity continues to rise and the ETF is approved, AVAX could see a sustained move toward the $32–$35 range by the end of 2025. The path, however, remains dependent on overcoming key resistance levels and maintaining momentum in transaction volume and TVL.

Source: [1] Avalanche Price Forecast: Grayscale files SEC registration (https://www.mitrade.com/insights/news/live-news/article-3-1068426-20250826) [2] Grayscale Files for Avalanche ETF, Will AVAX Price Recover? (https://finance.yahoo.com/news/grayscale-files-avalanche-etf-avax-160203359.html) [3] Avalanche (AVAX) Price Prediction: Is $27 the Last Barrier ... (https://bravenewcoin.com/insights/avalanche-avax-price-prediction-is-27-the-last-barrier-before-a-run-towards-32-35)