- Avalanche’s TVL surged from $1.1B to $2.2B, with AVAX denominated TVL quadrupling, signaling organic DeFi ecosystem growth.
- AVAX price broke above $25 with strong momentum, targeting $30–$36; MACD and RSI indicate short-term bullish pressure.
- Octane upgrade improved network efficiency, fueling real asset inflows and sustained price action above key support zones.
Avalanche’s native token AVAX has entered a strong bullish phase following a notable uptick in the platform’s decentralized finance (DeFi) activity. The recent Octane upgrade enhanced the network’s confirmation speeds, lowered transaction costs, and improved user experience.
These improvements directly contributed to a nearly 40% surge in total value locked (TVL), according to on-chain data. The USD-denominated TVL on Avalanche rose from around $1.1 billion in March 2024 to nearly $2.2 billion by May 2025. This sharp growth shows both increasing user engagement and the platform’s strengthening valuation.
On-Chain Data Shows Organic TVL Growth in AVAX and USD
Besides the rise in USD-based TVL, the locked value in AVAX tokens also posted major gains. It dipped to around 20 million AVAX in mid 2024, but by May 2025, the amount exceeded 80 million AVAX.
This rise confirms that growth wasn’t solely due to price increases. Instead, the network saw more actual assets committed to DeFi protocols. The surge in locked tokens came amid broader volatility, with fluctuations recorded between May toJune 2024 and January 2025.
Still, the overall trend remained upward across both USD and AVAX denominated metrics. Quarter-on-quarter, Avalanche registered a 37.0% growth in DeFi TVL. This suggests sustained inflows of capital into the ecosystem.
The spike may relate to competitive yields, upgraded platform utility, and increased developer activity. Importantly, the simultaneous growth in token and USD terms signals real ecosystem expansion, not just speculative pricing shifts.
Technical Structure Points to Further Price Upside
AVAX has been rallying since mid-June 2025, recovering from lows near $16 to currently trade at $26.72. This represents a day on day increase of 2.53%, with price action breaking above resistance near $25.
The trend has formed consistent higher highs and higher lows, indicating strong buying momentum. Trading volume has reached 1.48 million, indicating growing activity from market participants. However, the RSI is at 72.17, just above the overbought level of 70.
This level suggests intense buying activity, which could lead to brief consolidations. Meanwhile, the MACD indicator confirms positive momentum, with the MACD line at 1.62 trending above the signal line at 1.43. A green histogram adds further strength to the short term outlook.
Market Conditions May Lead to Either Breakout or Retracement
If the current trend continues, AVAX may soon test the key resistance level at $30. A successful breakout could push the price toward $34 or even $36, retesting highs from earlier in the year.
These levels align with previous points of interest on the chart and are supported by bullish on-chain activity. On the downside, any pullback may find initial support around $24. If weakness persists, the next crucial level is at $21.50, a zone where AVAX previously consolidated.
A drop below that could reopen the $18–$19 range, weakening near term bullish strength and reversing recent gains. AVAX’s rally is supported by real-time data from both price action and DeFi participation metrics.
The Octane upgrade has contributed to stronger fundamentals, drawing more capital into Avalanche protocols. As technical indicators reflect bullish pressure, analysts say key resistance and support levels will influence the asset’s next move.
