Avalanche Network Usage Grows Defying AVAX Price Decline in Q4 2025
New data from crypto analytics firm Messari shows Avalanche stuck in a weird spot last quarter – its token got crushed while network activity absolutely exploded. Let’s unpack this bizarre mismatch.
AVAX Price Tanks While Network Goes Bonkers
Man, AVAX got wrecked in Q4 2025. The token plummeted 59% from September to December, nosediving from $30 to barely $12.30. Even worse? It’s down a brutal 65.5% compared to the same period last year. Ouch.
Avalanche’s market cap crashed too – from $12.7B to $5.3B. That market cap freefall knocked AVAX down seven spots in crypto rankings. But here’s where things get wild…
Transaction Records Shattered Amid Carnage
While the price was crumbling, people were using Avalanche like never before. Daily transactions on the C-Chain skyrocketed 63% to 2.1 million. October 10th was particularly nuts – AVAX saw $520k in fees from liquidations alone. That’s the network’s biggest single-day fee haul since early 2024!
Zooming out shows even crazier growth:
- 🔥 38.2 million daily transactions across all chains (1,162% YoY increase!)
- 😲 24.7 million daily active addresses (that’s a 16,360% jump from 2024!)
DeFi Holds Strong Against Market Storm
Avalanche’s DeFi ecosystem showed serious resilience according to Messari’s report. While USD-denominated TVL fell 42%, the native TVL in AVAX terms actually grew 34.5% – hitting 97.5 million AVAX. The DeFi Diversity Score (measuring protocol distribution) kept climbing too, showing the ecosystem’s getting healthier even during this market volatility.
Real World Assets Go Parabolic
Here’s the real jaw-dropper: RWAs (real-world assets) on Avalanche nearly 10x’d year-over-year. Total RWA TVL exploded from $789.8 million in Q3 to $1.33 billion by December. That’s a 949% annual increase – making RWAs Avalanche’s undisputed growth champ last quarter.
Meanwhile, staking took a predictable hit from the price plunge – total staked value dropped 60% quarterly to $2.3 billion. Stablecoins were one bright spot though, with their market cap inching up to $1.8 billion.
Silver Linings After the Storm?
So what’s the takeaway? While AVAX holders got battered last quarter, the surge in transactions and RWAs suggests Avalanche’s fundamental utility keeps growing. This disconnect between price and usage has some analysts eyeing a potential long-term recovery path despite the brutal price action.
Featured image credit: OpenArt | Chart source: TradingView
