Avalanche TVL Soars to $1.5B: But Can AVAX Rally Without Users?

Shravani Dhumal
28 Views
7 Min Read

According to the source, the Avalanche price prediction is now under close watch as derivatives interest surges and DeFi inflows push total value locked (TVL) to $1.5 billion. As Avalanche’s DeFi ecosystem becomes more robust post-upgrade, whales are beginning to reposition their capital.

However, fewer people are using the network, and not many retail users are joining in. Experts are waiting to see if the price can keep rising or if it will slow down without wider support.

Is the rise in open interest pointing to continued upside?

Yes. Open interest in AVAX derivatives has jumped more than 15%. This jump usually means traders are becoming more confident and expecting prices to rise further. 

Avalanche price
Avalanche TVL Soars to $1.5B: But Can AVAX Rally Without Users? 10

A derivatives analyst noted that “a steady increase in open interest often leads to strong price moves, especially when technical indicators are also positive.”

Still, using leverage can make things more risky; if market sentiment suddenly turns negative, it could lead to fast price drops. Even so, the rising interest shows that experienced traders still believe in the rally.

Can AVAX overcome the $26–$28 resistance zone?

AVAX has recently shaped a classic double-bottom formation and managed to break past its falling trendline. It’s now hovering near the $26 to $28 range, a price zone that has repeatedly proven tough to clear.

Market analysts say a strong daily close above this level could be the confirmation that bulls are waiting for. On the flip side, if buying interest fades, a retreat to lower support levels would be the likely outcome.

The Avalanche price prediction now depends on whether this setup gets enough trading volume and support from the overall market.

MetricsValue
Total Value Locked$1.5 billion 
Daily Transactions1.4 million (up 493%)
Open Interest in Derivatives+15% recent surge
Price Prediction Range$25-$33
Long-term Price Target$140

Why does weak user growth pose a risk to the rally?

The rally’s strength is still uncertain because network activity is going down. According to data from IntoTheBlock, new addresses on the Avalanche network fell by 33.93%, and active addresses dropped by over 10%. This shows that the recent price rise may be more about big investors moving money around than real user growth.

For the Avalanche price prediction to remain strong over time, the network must attract more new users and maintain consistent on-chain activity. Without this foundation of real user engagement, any short-term price gains may fade quickly.

What does the future hold for the Avalanche price prediction?

The Avalanche price prediction appears cautiously optimistic, though it depends on key factors falling into place. The sharp rise in total value locked (TVL) and increased derivatives activity suggests institutional players are showing renewed trust in the project. However, there’s a clear gap between capital inflow and actual network use.

Avalanche Price Prediction 2025
Avalanche TVL Soars to $1.5B: But Can AVAX Rally Without Users? 11

To sustain momentum and break through resistance levels, AVAX needs to see stronger user growth, higher retail participation, and increased attention across broader media platforms.

Analysts agree that while a breakout looks possible, it needs solid support to work. One DeFi researcher remarked, “We’ve seen many technical breakouts fail when the underlying fundamentals didn’t back them. For AVAX, the network needs to demonstrate strength beyond just institutional flows.”

Conclusion 

Based on the latest research, the Avalanche price prediction shows that AVAX is at an important stage. The 40% jump in total value locked (TVL) and $835 million in open interest suggest strong short-term growth. But low network activity and weak social buzz are signs to be careful.

If more new users don’t join and overall interest doesn’t improve, the rally might not last. For now, traders are watching the $26–$28 level closely; a clear move above it could show stronger belief in Avalanche’s future in DeFi.

Summary 

The Avalanche price prediction 2025 shows cautious optimism, as AVAX is gaining strength following a 40% increase in TVL after the Octane upgrade. Institutional interest is growing, and open interest in derivatives has climbed 15%, signalling possible upside. However, weak network activity, like a 33.93% drop in new addresses, raises concerns. For the rally to last, AVAX needs stronger user growth and retail involvement. A breakout above the $26–$28 resistance zone could confirm the bullish trend.

Explore more expert-backed crypto news and Avalanche like price predictions on our platform

FAQs

Why is AVAX gaining attention in 2025?

AVAX saw a 40% TVL surge after the Octane upgrade, drawing interest from big investors.

What does rising open interest signal?

It suggests traders expect bullish Avalanche price prediction.

What technical pattern is supporting AVAX?

AVAX recently formed a bullish double-bottom pattern.

Why is weak user growth a concern?

New addresses dropped by 33.93%, and active addresses fell by over 10%, showing low retail activity.

What’s the main risk to AVAX’s rally?

Low network activity and lack of retail support could slow down momentum.

What will strengthen Avalanche’s price outlook?

A mix of higher user growth, media attention, and continued capital inflow is key.

Glossary

Octane Upgrade – Speed-boosting upgrade fueling fresh momentum.

Derivatives Interest – Traders betting on AVAX price via futures/options.

Retail Participation – Involvement from everyday users, not just big players.

On-Chain Activity – Real user actions—wallets, transfers, interactions.

Double-Bottom – A bullish chart signal hinting at trend reversal.

TVL – Funds locked in DeFi on Avalanche—shows real investor weight.

Sources

AMBCrypto 

Ainvest 

Disclaimer

The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.

You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.

Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.

Advertising

For advertising inquiries, please email . [email protected] or Telegram

Share This Article
Follow:
Hello! I am Shravani, a Crypto News Writer. I have 3.5 years of experience as a Crypto Journalist and have worked on several projects dedicated to Bitcoin and Cryptocurrencies. I serve my expertise in researching current market trends and highlighting breaking news, and key regulatory changes through my writing in crystal clear words.
Leave a Comment