Avalanche's TVL Hits $2B as AVAX Battles Key $36.12 Resistance Level

Avalanche’s DeFi Total Value Locked (TVL) has surged past $2 billion, doubling since spring and marking the highest level in two years, according to multiple data sourcesAvalanche Price Forecast 2025: Breakout to $44 on the Horizon^[1]Avalanche – How $2B TVL sets stage for AVAX’s $44 push^[2]Avalanche’s DeFi TVL Surpasses $2 Billion, AVAX Eyes $44^[3]. This milestone underscores renewed institutional and retail confidence in the network, as AVAX, the native token, tests key resistance levels and exhibits bullish technical indicators. The TVL growth aligns with increased on-chain activity, including rising spot trading volumes and sustained exchange outflows, which signal accumulation by whales and institutional investorsAvalanche Price Forecast 2025: Breakout to $44 on the Horizon^[1]Avalanche – How $2B TVL sets stage for AVAX’s $44 push^[2].

Technical analysis highlights AVAX’s momentum, with the token recently breaching $26.81 and establishing higher support zones. Current price action is testing resistance at $36.12, a critical threshold that could determine the next phase of its trajectory. A sustained close above this level could propel AVAX toward $44, while failure to hold may trigger short-term retracements to $33–$34Avalanche Price Forecast 2025: Breakout to $44 on the Horizon^[1]Avalanche – How $2B TVL sets stage for AVAX’s $44 push^[2]. The MACD has formed a bullish crossover, reinforcing upward pressure, while the RSI indicates overbought conditions, suggesting potential volatilityAvalanche Price Spikes 10% as Its DeFi TVL Surpasses 2 Billion^[4]. Analysts caution that while the breakout structure remains intact, short-term corrections are possible amid profit-taking.

Spot trading volume has surged, with bubble map data showing heightened participation from both retail and institutional traders. This surge follows months of consolidation and reflects a broader influx of liquidity into Avalanche markets. Sustained demand could validate the bullish narrative, particularly if exchange outflows continue to signal accumulation. Recent data reveals daily outflows of nearly $1 million, reducing immediate selling pressure and aligning with the TVL surgeAvalanche Price Forecast 2025: Breakout to $44 on the Horizon^[1]Avalanche – How $2B TVL sets stage for AVAX’s $44 push^[2]. These trends indicate investors are locking up AVAX for long-term exposure rather than maintaining liquidity for trading.

Institutional support for Avalanche has also intensified, with high-profile developments amplifying its appeal. Anthony Scaramucci’s $300 million investment in tokenized hedge funds and a $550 million AVAX-focused treasury through HiveMind Capital underscore growing institutional adoptionAvalanche Price Spikes 10% as Its DeFi TVL Surpasses 2 Billion^[4]. Additionally, Avalanche’s recent onboarding of DeFi protocols like sUSDe and Pendle Finance has expanded its fixed and variable yield markets, enhancing its infrastructure and attracting new capitalHow Far Can the AVAX Price Go This September? - Coinpedia^[5]. These strategic integrations, combined with the Octane upgrade’s reduced gas fees, position Avalanche as a competitive alternative to Ethereum for developers and users.

Despite the bullish momentum, risks remain. The DeFi TVL surge is partly attributed to speculative activity, and the market’s reliance on key resistance levels introduces volatility. If AVAX fails to sustain dominance above $36, a pullback to $28–$26 could occur, testing critical support zones. However, continued institutional inflows and expanding DeFi use cases—such as real-world asset tokenization and gaming—suggest a medium-term upward trajectory. Analysts project AVAX could target $42.91 in September if bullish conditions hold, with $45–$50 as a longer-term objectiveHow Far Can the AVAX Price Go This September? - Coinpedia^[5].

The broader crypto market’s macroeconomic environment will also influence Avalanche’s performance. While Ethereum’s TVL remains significantly higher at $64.34 billion, Avalanche’s $1.5 billion TVL ranks it among the top 10 DeFi networks, reflecting its growing ecosystem. Competitors like Solana and Hyperliquid have also seen TVL gains, but Avalanche’s sub-second finality and low fees offer a compelling value proposition for developers. As institutional adoption accelerates and DeFi protocols expand, Avalanche’s position as a high-performance, EVM-compatible chain could solidify its role in the decentralized finance landscape.