Avalanche (AVAX) has kicked off 2026 with significant momentum, witnessing an 11.9% price increase and a 71.1% surge in social engagement, according to data from LunarCrush. This bullish sentiment is largely attributed to renewed institutional interest, specifically through updated filings for spot AVAX Exchange-Traded Funds (ETFs) that now incorporate staking features.
Key drivers of the rally are filings from major asset managers. Grayscale has submitted an amended S-1 filing with the U.S. Securities and Exchange Commission (SEC) to convert its Avalanche Trust into a spot ETF. Crucially, the new structure would allow the fund to stake up to 70% of its AVAX holdings, with the earned rewards distributed to investors, transforming it into a yield-generating instrument. VanEck has made similar amendments to its own Avalanche ETF filing to include staking rewards. Furthermore, Bitwise has submitted requests to list several altcoin ETFs, including one pegged to AVAX.
This institutional push coincided with a 149% spike in AVAX's 24-hour trading volume to approximately $564.56 million and a 9% rise in market capitalization to $5.79 billion. At the time of reporting, AVAX was trading at $13.46. Analysts suggest that maintaining above the key $12 support zone could pave the way for a breakout, with potential resistance levels identified at $34.31, $40.63, and $46.53.
While the outlook is positive, traders are monitoring a scheduled token unlock. A release of 700,000 AVAX tokens (worth $8.6 million, or 0.16% of supply) is on the horizon, part of several planned unlocks in early 2026. The market's reaction to this new supply will be a key test.
The growing institutional confidence in Avalanche was echoed by Wall Street veteran Anthony Scaramucci, founder of SkyBridge Capital, who recently singled out AVAX (alongside Solana and TON) as a standout altcoin for the year.
