Avalanche (AVAX) has demonstrated a stark decoupling between its token price and underlying network activity, with key metrics surging despite a challenging market environment. While the AVAX price declined by 59% in Q4 and is down 65.5% year-over-year, on-chain fundamentals reached new highs.
In Q4, daily transactions across all layers of the Avalanche network averaged 38.2 million, a significant milestone. Specifically, daily transactions on the C-Chain surged to 2.1 million, marking a 63% quarter-over-quarter increase. This surge in usage translated directly into network revenue, with fees paid in native AVAX rising by 25%. Notably, a single market event on October 10 generated over $520,000 in transaction fees, representing the network's highest single-day revenue in nearly two years.
The most significant development is the massive growth in Real-World Asset (RWA) integration, fueled by institutional adoption. BlackRock tokenized $500 million in assets through its BUIDL fund directly on the Avalanche network, signaling a major vote of confidence from the world's largest asset manager. This contributed to RWA becoming the platform's fastest-growing sector, with the total value locked in tokenized RWAs jumping 68.6% in just three months and growing nearly 950% year-over-year.
Further institutional adoption includes FIS partnering with Intain to bring tokenized loan markets to Avalanche, enabling approximately 2,000 US banks to trade and settle loans. S&P Dow Jones also introduced the S&P Digital Markets 50 Index on the platform.
Global expansion has been robust. In Japan, the Progmat platform migrated over $1.1 billion in tokenized securities to a dedicated Avalanche Layer 1. TIS Inc. launched a multi-token banking platform via AvaCloud. These developments helped push average daily active addresses to 24.7 million, a staggering 16,360% increase year-over-year, partly driven by telecom networks in Asia onboarding millions of new users.
Despite the strong fundamentals, AVAX price action remains under pressure. As of the report, AVAX was trading around $10.59, having broken below the $11.42 support. Technical analysis indicates the $10.6 level is a critical support floor, with a break below potentially leading to a dip towards $6.17. A hold and rebound could target $13.10. The RSI reading of 28/100 suggests the token is trending toward oversold territory.
