Avalanche Sees $6.5 Million ETH Inflow Amid 2.6% Price Drop

Avalanche [AVAX] experienced a significant inflow of Ethereum [ETH] capital, with $6.5 million in Bridged Netflow entering the AVAX ecosystem within a 24-hour period. This substantial capital movement suggests that larger market participants are increasingly interested in AVAX, potentially indicating a quiet accumulation by bigger players. Despite this inflow, AVAX's price fell by 2.6% to $18, extending its weekly and monthly losses to 13% and 19%, respectively. This price decline raises questions about whether the capital inflow will lead to a recovery or if it will stall out.

The inflow of ETH capital into Avalanche is noteworthy as it suggests strong market participants are beginning to eye AVAX. This rising interest is traced to AVAX setting new highs in on-chain activity. AVAX Daily Transactions hit a three-month high of 1.3 million, marking a surge in network usage. At the same time, Daily Active Addresses also climbed to their highest point in June, validating that these aren’t just bot-driven spikes. The combination points to rising user interaction, not just token speculation. If this upward trend continues—with more on-chain activity and active users—it could lead to sustained accumulation of the asset over time. However, not all signals are aligned just yet.

While activity spiked on-chain, DeFi-related metrics told a different story. There’s been a notable decline in Decentralized Exchange (DEX) trading volume for the asset over the past 24 hours. As of press time, volume dropped to around $5 million—its lowest point in the past three months. This drop suggests that on-chain traders are not utilizing AVAX as actively as before, which may partly explain its recent price decline. Additionally, Stablecoin Supply on the Avalanche chain has fallen sharply, hitting its lowest level during this period. The current figure of $1.1 billion indicates reduced demand for stablecoins on the chain, further contributing to AVAX’s price weakness. The continued drop in DEX trading and Stablecoin Supply has negatively impacted the asset’s growth.

Market analysis indicates that ongoing buying activity from Ethereum [ETH] investors could spark a broader rally—though key on-chain metrics still need to align. Investor sentiment in the market is gradually shifting, as liquidity continues to move across various assets. However, the significant capital flow from ETH into AVAX, coupled with the decline in DeFi activity, presents a complex picture. While the inflow of ETH capital suggests potential for growth, the drop in DEX trading volume and stablecoin supply raises concerns about the asset's immediate prospects. The future of AVAX will depend on whether the positive on-chain activity can translate into sustained growth or if the current DeFi trends will continue to weigh on its performance.