Avalanche Stablecoin Supply Rises 14% as On-Chain Activity Surges 715%

Avalanche's stablecoin ecosystem has shown significant growth in recent weeks, with total stablecoin supply increasing by 14% over the past 30 days to reach $1.5 billion [1]. Concurrently, adjusted stablecoin transaction volume surged by 715% to $131 billion, reflecting a sharp increase in liquidity and on-chain activity [1]. This momentum has positioned Avalanche as one of the most active blockchain networks in the stablecoin space, with decentralized exchanges such as Blackhole, LFJ, and Uniswap processing $7.7 billion in transactions in July and $5.8 billion so far in August [1]. The continued rise in decentralized trading volume highlights the growing utility and adoption of Avalanche’s blockchain infrastructure.

In addition to stablecoins, Avalanche’s non-fungible token (NFT) market has also seen notable progress. Weekly NFT sales increased by 52% to $1.42 million, with the veBlack collection driving much of this demand through a 72% rise in trading volume [1]. This expansion into NFTs adds another layer of utility to the Avalanche network, further enhancing its appeal to developers and users alike. The chain’s transaction volume has also grown significantly, with Nansen reporting 4.5 million transactions over the past week—a 55% increase from the previous week [1]. This trend supports a broader narrative of sustained network growth and increasing user engagement.

The AVAX token itself has been in a bullish technical configuration. On August 15, AVAX traded at $23.78, reflecting a 60% recovery from its lowest point of the year [1]. A double-bottom pattern has formed at $15.60, a chart formation often associated with potential bullish reversals. The price has since moved above its 50-day moving average and is now approaching the key resistance level of $27.4. A successful breakout above this level could propel AVAX toward $40, representing a potential 65% increase in value [1]. Analysts have emphasized this level as a critical threshold for determining the token’s short-term trajectory.

Institutional interest in Avalanche has also increased, with reports indicating record on-chain activity and heightened market attention for a potential price breakout above $30 [2]. Some analysts suggest that if the $27.4 resistance is breached, AVAX could move toward $34–$38 by the end of Q3, aligning with the broader resurgence of altcoins in the market [2]. However, it is important to note that while certain forecasts suggest AVAX could reach as high as $65 under bullish conditions, these remain speculative and should not be treated as guaranteed outcomes [4]. The crypto market is inherently volatile, and while Avalanche is showing strong fundamentals, including whale accumulation and enterprise adoption, actual price performance will depend on broader market dynamics.

The growth in stablecoin activity, combined with technical indicators, suggests that Avalanche is on the verge of a significant price movement. However, while forecasts paint an optimistic picture, investors are advised to remain cautious and monitor key resistance levels and market conditions. The coming weeks could be pivotal in determining whether AVAX secures a sustainable breakout or faces correctionary pressures in the face of broader market uncertainties.

Sources:

[1] AVAX price on the cusp of a breakout as key metric surges 715%

(https://crypto.news/avax-price-on-the-cusp-of-a-breakout-as-key-metric-surges-715/)

[2] Avalanche (AVAX) Price Prediction: Institutional Surge and

(https://bravenewcoin.com/insights/avalanche-avax-price-prediction-institutional-surge-and-on-chain-records-set-stage-for-55-target)

[4] Cold Wallet's $6M+ Presale, Kaspa's $0.10 Breakout, and ...

(https://coincentral.com/cold-wallets-6m-presale-kaspas-0-10-breakout-and-avaxs-65-goal-best-long-term-crypto-picks/)