Avalanche's DeFi ecosystem is experiencing robust growth, yet the AVAX token's price performance has not reflected the underlying network activity. Deposits on Aave v4, which launched on Avalanche in July as the protocol's first expansion beyond Ethereum, have surpassed $225 million. Total Aave v4 deposits across all networks reached $1.75 billion, marking an all-time high. Avalanche's share of these deposits grew by over 295% in the two weeks following the end of October.
Active loans on Aave v4 within the Avalanche network have exceeded $100 million, indicating growing liquidity and utility on the chain despite price weakness.
Institutional Treasury Expands Holdings
AVAX One, a treasury focused on accumulating Avalanche tokens, reported $49.90 million in net income for Q3, driven by $55.10 million in unrealized digital asset gains. Revenue reached $2.40 million, representing a fourfold increase year-on-year compared to $526,000 in the same period of the previous year.
The treasury eliminated over $14.90 million in convertible debt during Q3, bringing the balance to zero. The firm now holds 14.17 million AVAX tokens, with 99.7% of holdings staked at an annualized rate of 5.85%. AVAX One repurchased 384,000 shares in Q3 and an additional 701,000 shares in October.
Price Pressure Amid Network Growth
At the time of reporting, AVAX was trading within a sideways range between $8 and $9, testing key support levels. Despite institutional buying activity and DeFi adoption growth, these developments have not translated into sustained upward price pressure. The $8 level has previously supported the price through multiple tests, though further downside toward $7.82 remains possible if selling momentum accelerates.
