The price of Avalanche (AVAX) is approaching a decisive technical breakout. Analysts project a jump to $35 if it breaks above a key level, while the DeFi ecosystem, RWA, and the search for a spot ETF are growing.
Cryptocurrency analyst Ali Martinez was direct in stating that “A daily close above $27 could send Avalanche (AVAX) to $35.”In a recent post on X, Martinez estimated that this projection has a 69% probability of being fulfilled, based on technical patterns and institutional volume. AVAX is currently trading at $25,4, according to data from the CoinGecko platform.
BUY AVAX ON BIT2MEAVAX's path to $35
Another independent analyst on X agreed with Martinez that $27 represents a key breakout level on AVAX's daily chart. If the cryptocurrency's price can turn that resistance into support, a bullish move toward $35 becomes highly likely. Technical indicators like the RSI and MACD show positive momentum, while the network's daily transaction volume exceeds 20 million.
Therefore, the market's attention is focused on a possible close above $27, which could trigger impulse buying and open the door to new trading ranges. Otherwise, support at $25,5 and $23,5 would mark consolidation zones for this digital asset.
Source: CoinGecko
What is Avalanche and why is it gaining popularity?
Avalanche is a high-speed, low-cost smart contract platform designed to scale decentralized applications (dApps) and custom networks through its subnet architecture. Its consensus algorithm, known as Avalanche Consensus, allows completion times of less than one second and thousands of transactions per second.
The network is made up of three main chains: the C-Chain (EVM compatible), the X Chain (for assets) and the P-Chain (for validation and staking). This modular structure has allowed Avalanche to position itself as an efficient alternative to other blockchains. smart contracts such as Ethereum, especially in sectors such as DeFi, gaming, and institutional tokenization.
In addition, its infrastructure Evergreen L1s It has attracted traditional financial players seeking controlled environments to experiment with tokenized assets, reinforcing its role as a bridge between traditional and decentralized finance.
OPERATE WITH AVALANCHE HEREDeFi on Avalanche breaks records: TVL exceeds $2.000 billion
Avalanche's DeFi ecosystem has shown clear signs of recovery. According to data from DeFi Llama, the total value locked (TVL) on the network surpassed $2.200 billion this month, marking the highest level in the past two years. Avalanche developers highlighted this significant growth on X, which is partly attributed to the Octane update, which reduced transaction fees and improved the user experience.
Protocols such as Aave V3 and Benqi dominate the TVL, accounting for over 60% of the total TVL according to the data. Additionally, the number of daily active addresses has skyrocketed to over 500.000, while daily transactions exceed $20 million. This data reflects renewed and growing adoption, which could translate into increased demand for AVAX in the short term.
Activity on decentralized exchanges (DEXs) has also increased, with weekly volumes approaching $2.700 billion, the highest level since Q2024 XNUMX.
Avalanche and the rise of real-world assets (RWA)
Avalanche not only excels in DeFi, but has become a major player in the real-world asset (RWA) market. The network recently announced a partnership with Grove to tokenize $250 million worth of treasury funds and loan obligations, doubling its RWA footprint to $445 million.
These products, such as JTRSY and JAAA, allow institutional investors to access traditional assets through smart contracts, improving liquidity and transparency. The tokenization of assets such as Treasury bonds and CLOs on Avalanche reinforces its position as an infrastructure for institutional finance.
Additionally, Avalanche has been selected for projects such as FIFA Blockchain y ANZ for tokenization initiatives, demonstrating its versatility and scalability.
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Avalanche Spot ETF: The Next Bullish Catalyst?
The market is also closely monitoring the regulatory process for AVAX-linked spot ETFs. Grayscale and VanEck have filed applications with the SEC to launch exchange-traded funds that offer direct exposure to Avalanche without the need to own the cryptocurrency.
Although the SEC has delayed its decision, the approval of a spot ETF could represent a milestone for AVAX, facilitating institutional access and increasing liquidity. As with Bitcoin and Ethereum, an approved ETF typically translates into increased demand and upward pressure on the price of the underlying asset.
In conclusion, Avalanche is at a crucial technical and fundamental point. If it manages to close above $27, the path to $35 could open up significantly. Added to this are structural factors such as the growth in DeFi, the expansion of RWA, and the expectation of a spot ETF. Everything indicates that AVAX is gaining traction not only as a speculative asset, but also as key infrastructure for the next generation of digital finance.
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