Avalanche has experienced a massive increase in on-chain activity and network usage. Avalanche’s daily transactions rose to 3.5 million, the highest level last year, according to Nansen.
Such a large increase in transactions indicates that network usage is increasing. During this period, the network’s active addresses grew from 100,000 to a new base of 500,000 to 700,000 for most of 2025.
Nansen pointed out three main factors that essentially drive this network growth. Grayscale first created a connection for institutional investors by launching GAVA, an AVAX staking ETF on Nasdaq.
Second, SEC and CFTC classified AVAX As a digital product, it clarifies the legislation. Finally, Broadridge enabled on-chain structure by introducing on-chain proxy voting.
When active addresses and transactions increase together, fundamentals are suggested to be strengthened through actual usage rather than speculation.
In fact, the network has seen an increase in the number of actual users, as Sybil and Non-Sybil metrics show. This metric showed that non-Sybil users increased from 5,000 to 49,000 in the last four months.
Therefore, network growth is driven by real, unique users, while bot activity is significantly reduced. Traditionally, increased network activity has supported price growth.
Market demand is gradually recovering
Interestingly, as network activity increased, AVAX saw significant demand across the market, particularly from large enterprises.
For example, on the spot side, buyers have shown relative strength in recent weeks. Over the last three days, the altcoin recorded an outflow of $49 million against an inflow of $45.9 million.
As a result, Spot Net Flow remained negative, falling 180% to -$3.06 million; This is a clear sign of aggressive spot accumulation.
Looking at the Spot Average Order Size data, it appears that this demand is mostly driven by whales. Thus, large whale orders were placed around $9.3, and whales formed a demand wall around $8.9 and $9.3.
AVAX remains in a downtrend
Surprisingly, AVAX remains in a downtrend as Avalanche’s on-chain activity increases and demand begins to recover.
Looking at the Altcoin Supertrend, it seems that it has been in a downward trend since it exceeded $10 for the last two weeks. Similarly, the altcoin remains below the short- and long-term moving averages, further confirming the strength of the trend.
This shows that network growth has barely strengthened the altcoin price movement. Therefore, increased transactions may be on the sell side.
It also turns out that current market demand is insufficient to push AVAX out of this trend. For the trend to reverse, demand must hold and sustain AVAX above $10, where the trend collapsed.
By doing so, the altcoin will reverse the 20, 50, and 100-day EMAs, further strengthening the uptrend. However, if structural weakness persists, AVAX will trade sideways in the $8.4-$9.7 range.
Final Summary
- Avalanche’s on-chain activity is increasing, with daily transactions reaching an annual high of 3.5 million.
- AVAX still remains stuck in a downtrend amid structural weakness.
