Avalanche Network Activity Surges As AVAX Retreats From $25 High

Key Insights:

Avalanche’s daily transactions surged from 500,000 to over 1.3 million in just one month, reflecting renewed network usage.

The platform is seeing rising stablecoin activity and DeFi momentum as its total value locked rebounds from April 2024 lows.

Avalanche’s role in tokenizing real-world assets expands with initiatives like Bowmore’s whisky and a $250 million Grove deal.

Avalanche’s native token AVAX slipped from its recent peak of $25.64 on August 18, easing to around $23.61 in the face of widespread selling pressure across the cryptocurrency market. The price decline marked a 6.32% drop within 24 hours as investor profit-taking triggered losses across digital assets. Bitcoin and Ethereum also pulled back, falling to below $115,000 and near $4,200, respectively.

Despite the price correction, Avalanche’s network activity has accelerated sharply. Data from Nansen, released on August 18, revealed that Avalanche’s daily transactions more than doubled over the past month. The blockchain saw daily activity rise from approximately 500,000 transactions to over 1.3 million. Most of this increase occurred in the last two weeks, indicating renewed user interest and adoption.

DeFi and stablecoin growth support a bullish foundation

Avalanche's underlying fundamentals remain robust. Nansen's data highlighted growth in stablecoin usage, while decentralized finance metrics continue to strengthen. According to DeFiLlama, the total value locked (TVL) on Avalanche has been gradually climbing after hitting lows in April 2024. These indicators point to increased trust and use of the platform even amid market fluctuations.

Real-world assets and tokenization initiatives expand Avalanche’s reach

Additionally, Avalanche is gaining momentum as a preferred platform for real-world asset tokenization. In a recent development, Bowmore, one of Scotland’s oldest distilleries, chose Avalanche to tokenize its whisky bottles. Earlier in July, Grove announced that $250 million worth of real-world assets would come on-chain via Avalanche. The network also entered into a settlement partnership with Visa to support global stablecoin transactions.

Outlook remains steady with network strength intact

The recent uptick in transactions and broader ecosystem developments suggests that Avalanche’s technical foundation remains solid. While AVAX has faced short-term market pressure, the consistent on-chain growth and strategic real-world integrations could underpin a more sustained recovery in the future.