Lawrence Jengar
Oct 02, 2025 10:49
Avalanche’s native token reached multi-week highs due to increased institutional interest, highlighted by a treasury firm planning a billion-dollar acquisition following a successful SPAC transaction.
Avalanche’s native token surged to multi-week highs as institutional appetite for the blockchain platform intensifies, with a major treasury firm finalizing plans for a billion-dollar acquisition program following a successful SPAC transaction.
The AVAX token climbed above $30 in early October trading, extending gains from September’s dramatic rally that saw prices jump from $23 to a peak of $36 before settling around current levels. The momentum reflects growing institutional confidence in the Ethereum-alternative blockchain as traditional finance firms increasingly embrace tokenization strategies.
Institutional Treasury Moves Drive Momentum
At the center of the latest surge stands HiveMind Capital, which recently completed a $550 million fundraising round specifically earmarked for AVAX token accumulation. Industry sources indicate the firm is now targeting a significantly larger $1 billion treasury program designed to establish substantial holdings in the Avalanche ecosystem.
“We’re witnessing a fundamental shift in how institutional capital views alternative blockchains,” said Marcus Chen, senior analyst at Digital Asset Research. “The combination of Avalanche’s technical capabilities and the incoming wave of tokenized traditional assets creates a compelling investment thesis that these treasury firms are clearly recognizing.”
The institutional interest extends beyond pure speculation. SkyBridge Capital, led by Anthony Scaramucci, announced plans for a $300 million tokenized fund launch on the Avalanche network. Additionally, Mirae Asset, managing over $316 billion in assets, committed to deploying tokenized investment products on the blockchain platform.
Network Fundamentals Support Price Action
The price rally coincides with robust on-chain growth metrics that underscore Avalanche’s expanding utility. Network transactions surged 178% over the past 30 days to reach 49.75 million, while active wallet addresses increased 29% to 734,035 during the same period.
Fee generation, a key indicator of network usage, jumped 102% to $1.43 million monthly, reflecting increased economic activity across the platform. The growth positions Avalanche among the fastest-expanding blockchain networks, despite not yet reaching the scale of Ethereum or Solana.
“The fundamental metrics tell a story of real adoption rather than speculative trading,” explained Sarah Rodriguez, blockchain strategist at Meridian Digital. “When you see transaction volume, active users, and fee generation all moving up together, it typically signals sustainable growth rather than a temporary pump.”
Regulatory Catalysts on Horizon
Market participants anticipate additional momentum from expected regulatory developments. The Securities and Exchange Commission is widely expected to approve multiple AVAX exchange-traded funds in October, potentially opening the token to broader institutional and retail investment flows.
The regulatory clarity would mark a significant milestone for Avalanche, which has positioned itself as an enterprise-friendly blockchain through partnerships with traditional financial institutions. Real estate tokenization firm Balcony has also announced plans to leverage the network for property-backed digital assets.
Technical Outlook Remains Constructive
From a technical perspective, AVAX has broken above key resistance levels around $31.25, with analysts targeting potential moves toward $47 if momentum continues. The token trades well above its 50-day moving average of $26.99 and 200-day average of $22.68, indicating a sustained uptrend.
Current market sentiment measures show a “Greed” reading of 64 on the Fear & Greed Index, suggesting optimism without reaching euphoric levels that often signal local tops.
“The setup looks constructive for continued gains, especially if we see follow-through on the institutional adoption narrative,” noted David Park, technical analyst at Crypto Capital Markets. “Breaking above the September highs around $36 would likely trigger additional algorithmic buying and potentially push us toward those $40-plus targets.”
Broader Market Context
The Avalanche rally occurs against a backdrop of renewed institutional interest in alternative blockchain platforms. As Ethereum faces ongoing scalability challenges and high transaction costs, competitors like Avalanche, Solana, and others have gained traction for specific use cases.
The tokenization trend, in particular, has emerged as a key driver for platforms that can handle enterprise-grade applications. Avalanche’s subnet architecture allows for customized blockchain deployments, making it attractive for traditional finance firms looking to digitize assets while maintaining regulatory compliance.
Looking ahead, the combination of institutional treasury accumulation, regulatory clarity, and fundamental network growth suggests Avalanche may be entering a new phase of mainstream adoption. However, the cryptocurrency market’s inherent volatility means investors should remain cautious about short-term price movements while focusing on longer-term adoption trends.
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