Avalanche (AVAX) Price Rises Amid ETF Interest and On-Chain Activity

Avalanche (AVAX) Price Rises Amid ETF Interest and On-Chain Activity

Avalanche (AVAX) has once again captured the attention of the cryptocurrency market as its price approaches a significant resistance level. This momentum is driven by growing anticipation surrounding a potential spot AVAX exchange-traded fund (ETF) and unprecedented on-chain activity. The convergence of these factors has sparked speculation about a possible breakout, although broader market conditions and competition from rival blockchains continue to add layers of complexity to the outlook.

ETF Speculation and Regulatory Developments

The possibility of a spot AVAX ETF has become a focal point within the crypto community. Industry experts, including analyst FaridRached, have noted that the approval of such an ETF could represent one of the most consequential developments since the introduction of Bitcoin ETFs. The U.S. Securities and Exchange Commission (SEC) is scheduled to rule on Grayscale’s AVAX ETF proposal by July 15, 2025. This decision is widely viewed as a potential turning point for institutional access to Avalanche.

Should the SEC grant approval, the AVAX ETF would follow the precedent set by spot Bitcoin and Ethereum ETFs, potentially facilitating increased institutional investment and broader market participation. However, the ETF landscape is becoming increasingly competitive. Projects like Solana are also advancing their ETF applications rapidly, which may influence investor sentiment and the flow of capital within the sector.

Technical Resistance and Market Dynamics

From a technical perspective, AVAX is approaching a critical resistance zone between $22 and $26, a range that has historically limited breakout attempts since early 2025. Analyst CW8900 has described this level as the “final resistance,” emphasizing its importance in determining whether AVAX can establish a sustained bullish trend. Previous rallies have been rejected at this threshold, making the current test particularly significant.

A successful breach of this resistance could indicate a structural shift in the market and pave the way for higher price targets. Until such a breakout occurs, traders are closely monitoring trading volumes and price follow-through to assess the strength and sustainability of any upward movement.

Record On-Chain Activity Highlights Network Growth

Complementing the positive price action, Avalanche’s network activity has surged to record levels. Data from TrendFi reveals that Avalanche is now processing over 20 million transactions daily, marking a twentyfold increase since 2021. This remarkable throughput positions Avalanche among the leading layer-1 blockchains, demonstrating its capacity to support large-scale decentralized applications and meet growing user demand.

Challenges Amid Competitive and Market Headwinds

Despite these encouraging developments, Avalanche faces significant challenges. The rapid advancement of competitors such as Solana, which is also pursuing ETF approval and experiencing its own price momentum, could divert investor interest and capital away from AVAX. Additionally, broader market concerns persist. Notably, warnings from prominent investors like Paul Tudor Jones regarding potential social unrest and market instability may dampen enthusiasm for risk assets, including cryptocurrencies.

Outlook

As AVAX tests a pivotal resistance level and awaits the SEC’s ETF decision, the interplay of technical indicators, fundamental developments, and competitive pressures will be critical in shaping its trajectory. While the surge in on-chain activity and optimism surrounding ETF approval provide strong support, market participants remain cautious in light of external risks and the evolving competitive environment.