What Happened This Week on Avalanche

Avalanche( AVAX) has been grabbing attention as Grayscale Investments added AVAX to its Q3 2025 Top 20 crypto assets, replacing Lido and Optimism. The decision highlights Avalanche’s recent gains in transaction activity, DeFi adoption, and gaming integration. On-chain data shows record highs in daily usage, particularly from gaming apps and stablecoin payments, contributing to growing ecosystem vitality .

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Institutional Validation & Ecosystem Momentum

This week’s narrative wasn’t just about tokens—it was about serious adoption. Grayscale’s move underscores confidence from institutional investors. Additional signals include signs of rising partnership activity and planned funding to Organizations using Avalanche’s subnet architecture . The Avalanche Summit earlier in June spotlighted new Layer 1 bridges, interchain messaging efforts, and modules for real-world asset support, picked up by both developer and enterprise audiences .

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AVAX: Technical Setup & Price Outlook

From a price standpoint, AVAX has maintained a range between $17 and $20, though the broader crypto market dip has weighed on momentum . Technical analysis identifies a bullish AB=CD pattern, suggesting a potential 20–30% rally to the $19–20 range . Resistance resides near $22–$24, while support lines hover around $17–$18, matching recent low activity and market consolidation .

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On-Chain Activity & Real-World Usage

Despite AVAX’s market value retreat in Q1, transaction volumes and user engagement remained robust . Notably, the Pulsar gaming ecosystem drove nearly 1.8 million daily transactions, contributing significantly to over 3.4 million total daily transactions across Avalanche L1s . Record numbers of active addresses—rising more than 140% quarter-over-quarter—underline the platform’s sticky and growing user base.

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Strategic Infrastructure Moves

Avalanche is also making waves in infrastructure and innovation. The Avalanche Summit London revealed Retro9000, a $40 million grant program rewarding projects that have already delivered real L1 tools or infrastructure . Meanwhile, bridges to Bitcoin (BTC.b) and Filecoin data integration were launched, signaling pushes towards cross-chain asset liquidity and sovereign data governance .

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Risks & Considerations

There are caveats to this story. AVAX’s price has lost nearly 25% in June and remains below critical moving averages, reflecting macro uncertainty. SEC delays on AvaX ETFs and broader regulatory concerns may slow or interrupt momentum . The presence of competitors—especially in L2s and subnets like Solana, Polygon, and even Binance—is also a factor worth weighing.

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What to Expect Next for AVAX

In the short term, watch for technical testing of $20–$22. A breakout could lead to a 20–30% rally, as chart patterns suggest. Medium term, institutional backers and grants may unlock new use cases and narrative expansion. Long term, consistent user growth, gaming firepower, and ongoing subnet innovation point toward sustained relevance in Web3.

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AVAX Summary

Avalanche is entering a phase where strong fundamentals—on-chain engagement, institutional backing, ecosystem funding—are converging with positive technical setups. While macro and regulatory pressures linger, the protocol is steadily evolving into a major player in scalable DeFi, gaming, and real-world asset integration. The path forward could see AVAX reclaiming $24+ if catalysts align, but caution remains welcome given market headwinds.