Key takeaways:
AVAX’s 10% to $33 on Tuesday is fueled by Avalanche treasury initiatives.
Avalanche's network growth in TVL and stablecoin market cap shows booming DeFi adoption.
AVAX’s rounded bottom pattern projects a short-term target at $55, and $212 in the longer term.
Avalanche's AVAX (AVAX) token surged 10% to trade above $33 on Tuesday amid a broader crypto market downturn, bucking the sell-off trend. AVAX price is up 21.5% from its local low of $29, driven by institutional momentum, signaling renewed confidence in the layer-1 token.
Positive fundamentals boost AVAX’s price
The Avalanche Foundation has made several moves to bolster AVAX’s institutional appeal. In early September, the nonprofit announced plans to raise $1 billion through two US-based crypto treasury companies, enabling them to acquire millions of AVAX tokens at discounted rates from foundation reserves.
Related: WLFI Advisor Bets $2.2M AVAX, 10x Leverage After $550M
One vehicle, led by Hivemind Capital and advised by Anthony Scaramucci, targets $500 million via a Nasdaq-listed company in a PIPE transaction. This was confirmed on Monday when AgriFORCE Growing Systems rebranded as Avax One, announced plans to raise $550 million to build a treasury centered on AVAX.
🔥 NEW: AgriFORCE Growing Systems to rename as AVAX One and plans to raise $550 million to establish the first NASDAQ-listed company with $AVAX treasury strategy. pic.twitter.com/p8Q1KUwEMF
— Cointelegraph (@Cointelegraph) September 23, 2025
The second will be reportedly carried out via a special purpose acquisition vehicle, which involves major industry investor Dragonfly Capital and also aims to raise $500 million.
These treasury companies will stash AVAX, creating sustained buying pressure and liquidity.
Institutional interest in AVAX has accelerated since February. Sweden-based asset manager Vitune introduced a crypto exchange-traded product (ETP), exposing Finnish investors to AVAX.
This was followed by global investment firm VanEck's application to launch an Avalanche exchange-traded fund (ETF) in March and Grayscale’s filing to convert its existing Avalanche Trust into an ETF last month. This further cements this institutional wave, driving the latest price rally despite market headwinds.
Avalanche onchain activity underpins AVAX price
Avalanche's ecosystem has expanded in 2025 with technical upgrades and more applications.
The Octane upgrade in April slashed C-Chain fees by 98%, propelling average daily transactions to 1.4 million by Q2 — a staggering 493% quarter-over-quarter rise — and active addresses up 57% to 46,397.
During the last week of August, Avalanche led all blockchains in transaction growth, rising over 66% in one week to hit an all-time high of 2.22 million on Aug. 31. Although this value has dropped since then, the metric remains high with the daily transaction count stabilizing above 1.2 million, per data from Nansen.
Meanwhile, the total value locked (TVL) doubled from $1 billion in April to $2.23 billion at the time of writing on Tuesday, reflecting a 120% growth post-Octane, driven by protocols like Aave ($515 million TVL).
Stablecoin market cap rose to $2.16 billion on Tuesday, an 81% increase over the last 30 days, according to DefiLlama.
Increasing TVL and stablecoin market cap signal booming DeFi adoption and network usage. This also enhances liquidity and potential for higher AVAX prices.
AVAX price chart: Rounded bottom pattern
AVAX’s daily chart reveals the emergence of a rounded bottom pattern, a classic bullish reversal formation signaling accumulation after prolonged consolidation.
From July’s lows near $17, the price has been tracing a gentle U-shaped base through September. This formation is confirmed by an over 100% increase in trading volume over the last 24 hours and a 17% jump from Monday’s lows around $29, indicating sellers are exhausted and buyers are gaining control.
This setup creates two bullish targets for AVAX. The first is a return to the pattern’s neckline at $55, a 61% increase from the current levels.
A decisive daily candlestick close above this level would confirm the pattern, clearing the way for a rally toward the second target at $212, the measured projection of the chart below. Such a move would represent a 511% increase from the current price.
However, the bulls should not get overconfident here. The relative strength index (RSI) is now near the “overbought” threshold. Such elevated RSI levels over the past few years have preceded significant price corrections.
As Cointelegraph reported, AVAX price must overcome the immediate resistance at $36 to increase the odds of breaking through the psychological level at $40 and later to the pattern’s neckline at $55.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.