What is expected in the development of AVAX?

Avalanche is making important progress with these key updates:

1. Subnet Expansion with Blueberry (Q4 2025) – Allowing businesses and game developers to create custom blockchains.
2. Growth of Real-World Asset (RWA) Ecosystem (2025–2026) – $250 million in funding to support tokenized assets like loans and government bonds.
3. Visa Partnership & Stablecoin Trials (Ongoing) – Enabling instant payments and government use cases using stable digital currencies.
4. Developer Tools Upgrade (2026) – Launching HyperSDK to make building on Avalanche easier and faster.

Deep Dive

1. Subnet Expansion with Blueberry (Q4 2025)

What’s happening: The Blueberry Upgrade, planned for late 2025, will expand Avalanche’s subnet technology. Subnets let projects create their own blockchains with specific rules and dedicated validators, while still connecting to Avalanche’s main network. Examples include FIFA’s NFT platform and MapleStory Universe’s gaming subnet.

Why it matters: This is good news for AVAX because subnets attract high-demand uses like gaming and enterprise applications. This increases the need for AVAX tokens for staking and transaction fees, which can help the network grow. The main challenge is competition from other blockchain platforms like Celestia.

2. Growth of Real-World Asset (RWA) Ecosystem (2025–2026)

What’s happening: Avalanche raised $250 million from Grove and Janus Henderson to expand tokenization of real-world assets such as U.S. government bonds, loans, and credit markets (AVAX Snow Report, July 2025).

Why it matters: This could broaden Avalanche’s use beyond decentralized finance (DeFi) by bringing traditional financial assets onto the blockchain. However, success depends on clear regulations and how quickly institutions adopt the technology.

3. Visa Partnership & Stablecoin Trials (Ongoing)

What’s happening: In July 2025, Avalanche joined Visa’s global stablecoin settlement network alongside PYUSD and EURC. Wyoming’s state government is also testing instant payments using Avalanche-based stablecoins for transparent and fast transactions.

Why it matters: This partnership shows Avalanche’s ability to handle mainstream payment systems, which is positive for AVAX. It could increase the use of stablecoins on Avalanche, leading to more network activity.

4. Developer Tools Upgrade (2026)

What’s happening: AvaCloud plans to release HyperSDK in 2026, a toolkit that simplifies creating subnets with easy-to-use templates and pre-built components. This follows the Octane Upgrade in July 2025, which cut fees on Avalanche’s C-Chain by 96%.

Why it matters: Better developer tools make it easier for creators to build decentralized apps (dApps), encouraging more innovation on Avalanche. However, Ethereum’s mature developer ecosystem remains a strong competitor.

Conclusion

Avalanche’s roadmap focuses on attracting institutions (through RWAs and Visa), scaling its subnet technology, and improving developer experience—key factors for long-term growth. While challenges like technical execution and market conditions exist, Avalanche’s emphasis on valuable use cases positions AVAX for steady ecosystem expansion. The big question is whether subnet-driven growth can balance out market ups and downs in 2026.

What updates are there in the AVAX code base?

Avalanche made major improvements to its technology in 2025, focusing on making the network faster, cheaper, and more flexible for businesses.

1. Octane Upgrade (July 19, 2025) – A big update that changed how fees work and how validators (network participants who help secure Avalanche) stake their tokens.
2. eERC Standard Launch (July 2025) – Introduced encrypted tokens that offer privacy while still allowing certain audits.
3. Asynchronous Execution Prep (Q3 2025) – Prepared the system to process multiple transactions at the same time, improving speed.

Deep Dive

1. Octane Upgrade (July 19, 2025)

Overview: This update revamped Avalanche’s fee system and how validators participate. As a result, transaction fees on the C-Chain dropped by 96%, costing about 1 cent per transfer.

Key changes:

• ACP-77: Changed validator staking from a fixed 2,000 AVAX to a pay-as-you-go model, cutting subnet setup costs by 83%.
• ACP-125: Lowered the minimum base fee from 25 nano AVAX (nAVAX) to 0.1 nAVAX.
• ACP-176: Introduced fees that adjust based on network congestion.

What this means: Lower fees and flexible staking make Avalanche more attractive to developers and businesses, especially those working with real-world assets (RWA). Validators now earn rewards based on their uptime and cross-chain activity, encouraging a healthy network (Source).

2. eERC Standard Launch (July 2025)

Overview: AvaCloud introduced encrypted ERC-20 tokens, allowing projects to keep transactions private while still meeting regulatory requirements.

What this means: This feature is neutral for AVAX overall but opens new possibilities for regulated industries like finance and healthcare that need privacy and compliance (Source).

3. Asynchronous Execution Prep (Q3 2025)

Overview: The Octane Upgrade included the first steps toward processing transactions in parallel, which is expected to fully launch by late Q3 2025.

What this means: This improvement could increase Avalanche’s transaction capacity by 3 to 5 times, making it better suited for large-scale business applications without slowdowns (Source).

Conclusion

Avalanche’s 2025 updates focus on making the platform more business-friendly by lowering fees, offering flexible network options, and enhancing privacy. With over 1.5 million daily transactions already, the upcoming asynchronous execution could help AVAX become the preferred blockchain for high-volume institutional use.

Why did the price of AVAX fall?

Avalanche (AVAX) dropped 3.4% in the last 24 hours to $31.91, even though it gained 11% over the past week. Here’s why:

1. Overall market pullback – The total crypto market value fell 3.7%, pulling AVAX down with it.
2. Profit-taking – After a 76% gain in 90 days, some investors sold to lock in profits.
3. ETF decision delay – The SEC postponed its decision on Grayscale’s AVAX ETF until July 2025.
4. Less interest in altcoins – The Altcoin Season Index dropped 7.25% as Bitcoin’s market share increased.

Deep Dive

1. Market-Wide Correction (Negative Impact)

What happened: The total value of all cryptocurrencies dropped 3.7%, from $3.89 trillion to $3.75 trillion, as investors became more cautious. AVAX’s price fell 3.4%, following this trend.

Why it matters: After the Federal Reserve’s rate cut on September 17 gave crypto a boost, the market is now adjusting. Bitcoin’s dominance—the percentage of the crypto market it controls—rose to 57.72%, up 0.65% in 24 hours. This means money is moving away from altcoins like AVAX and back into Bitcoin.

What to watch: The Crypto Fear & Greed Index is at a neutral 47. If it drops below 40, it could mean the market is headed for a bigger correction.

2. Profit-Taking After Rally (Neutral Impact)

What happened: AVAX surged 76% over the past 90 days before this recent dip. The Relative Strength Index (RSI), a measure of whether an asset is overbought or oversold, was at 68.17 on September 22—close to the overbought level.

Why it matters: Investors likely sold some AVAX after it reached a recent high of $35.75, taking profits. Trading volume jumped 61% to $1.34 billion in 24 hours, showing increased selling activity.

Technical details: AVAX’s price is above its 30-day average price ($27.18) but below a key resistance level at $33.10. If it falls below $30.76, it might drop further.

3. Regulatory Uncertainty (Negative Impact)

What happened: The U.S. Securities and Exchange Commission (SEC) delayed its decision on Grayscale’s spot AVAX ETF until July 15, 2025 (source).

Why it matters: While VanEck’s $100 million Avalanche ecosystem fund (source) supports long-term growth, regulatory delays often cause short-term price swings and uncertainty.

Conclusion

AVAX’s recent price drop is due to a combination of overall market caution, investors taking profits after a big rally, and regulatory delays. The $29.22 level is an important support point—if AVAX holds above this, it could bounce back, especially given strong institutional interest.

Key point to watch: Can AVAX stay above its 30-day average price ($27.18) if Bitcoin continues to gain market share?

What could affect the price of AVAX?

Avalanche’s price outlook depends on big investors getting involved, technology improvements, and overall economic changes.

1. ETF Approvals (Positive) – Applications from Grayscale and VanEck could bring in more institutional money.
2. Real-World Assets (Mixed) – Tokenizing $240 billion in real estate offers opportunity but comes with adoption risks.
3. Federal Reserve Policy (Positive) – Interest rate cuts increase liquidity, though economic uncertainty remains.

In-Depth Look

1. Institutional ETF Momentum (Positive Impact)

What’s happening: Grayscale and VanEck have filed to turn Avalanche (AVAX) trusts into ETFs, planning to list on Nasdaq under the ticker "AVAX" (Bitget). If approved, this could bring in billions from institutional investors, similar to what happened with Bitcoin and Ethereum ETFs.

Why it matters: ETFs make it easier and safer for big investors to buy AVAX. Historically, ETF approvals have led to big price jumps—for example, Bitcoin’s price rose over 120% after its ETF approval in 2024. With AVAX’s market cap at $13.4 billion, there’s plenty of room for growth if ETFs get the green light.

2. Real-World Asset Growth (Mixed Impact)

What’s happening: Avalanche supports projects like Apollo’s $50 million tokenized credit fund and a $240 billion municipal real estate tokenization initiative (WEEX). However, success depends on clear regulations and how well companies execute these plans.

Why it matters: If Avalanche becomes a go-to platform for institutional decentralized finance (DeFi) through real-world asset tokenization, it could boost AVAX’s value. But delays or regulatory challenges could slow progress. Partnerships like FIFA’s subnet projects add credibility but need ongoing adoption to make a real impact.

3. Economic Conditions & Fed Policy (Positive Impact)

What’s happening: The Federal Reserve’s interest rate cut in September 2025 helped AVAX’s price jump 12% (Cryptomus). Lower interest rates generally encourage investors to take more risks, including in cryptocurrencies.

Why it matters: AVAX’s 75% gain over the past 90 days reflects improving market sentiment. If the Fed continues to keep rates low, it could support further price increases. However, high market leverage ($1.07 trillion in open interest) means prices could be volatile if economic conditions change suddenly.

Conclusion

Avalanche looks set for short-term gains, driven by ETF hopes and supportive Fed policies. Still, challenges remain with real-world asset projects and competition from Bitcoin, which holds 57.7% market dominance. Keep an eye on the $27–$30 price range—breaking above this could push AVAX to $40–$46, while failing to break through might lead to a drop back to $25.

Key question: Will ETF approvals come through before the end of the year, or will regulatory delays slow down institutional interest?

What are people saying about AVAX?

Talk around Avalanche (AVAX) is swinging between hopes for a technical breakout and excitement about its growing ecosystem. Here’s what’s trending right now:

1. Traders are watching the $27 resistance level as a possible launchpad toward $40–$46
2. On-chain activity is up sharply with a 66% increase in weekly transactions, driven by growth in decentralized finance (DeFi) and meme coins
3. Institutional interest is rising, highlighted by Bitwise’s ETF filing and VanEck’s $100 million fund focused on AVAX
4. Some bearish signals appear near the $24.50 support level amid short-term selling pressure

Deep Dive

1. @ManLyNFT: $27 Breakout Could Lead to $40–$46 – Bullish

“AVAX is hovering just below the $27 resistance… Bitwise files for an ETF and real-world asset volumes jump 58%”
– @ManLyNFT (6.2K followers · 12.4K impressions · 2025-09-06 15:40 UTC)
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What this means: If AVAX breaks above $27, it could confirm strong upward momentum. This is supported by growing institutional interest, like Bitwise’s ETF filing, and increased activity involving real-world assets on the Avalanche network.

2. @bl_ockchain: 11.9 Million Transactions in One Week – Bullish

“DeFi activity on platforms like Trader Joe and Aave, plus whale-driven meme coin trades, are pushing transaction numbers up… Solana’s activity is declining”
– @bl_ockchain (23.1K followers · 18.7K impressions · 2025-09-03 13:13 UTC)
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What this means: The Avalanche network is seeing a surge in use, with 181,000 active addresses, indicating strong interest from developers and traders. However, some of this activity is driven by meme coins, which may not be sustainable long-term.

3. @MarcosBTCreal: DeFi Metrics Show a Quiet Comeback – Neutral

“Decentralized exchange (DEX) volume reached $761 million, total value locked (TVL) rose 5.4%… AVAX is holding its ground against other Layer 1 blockchains”
– @MarcosBTCreal (89.4K followers · 204K impressions · 2025-09-19 04:25 UTC)
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What this means: DeFi activity on Avalanche is steadily growing, with TVL now at $2.21 billion. This suggests AVAX is regaining relevance, though it’s not yet experiencing the hype seen in previous market cycles.

4. CoinMarketCap Community: Bearish Pressure Testing $24.50 Support – Bearish

“If AVAX fails to hold $24.50, it could slide down to $23.60… short-term momentum is weakening”
– @CMC Community Post (367012171 · 2025-08-17 01:09 UTC)
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What this means: Some technical analysts are warning that if AVAX falls below the $24.50 support level, it could trigger further declines. This reflects cautious sentiment after AVAX’s strong 75% gain so far this year.

Conclusion

Overall, the outlook for Avalanche (AVAX) leans bullish, supported by growing institutional adoption and increased network activity. However, there are technical hurdles and risks from profit-taking that investors should watch. The key level to watch is $27 resistance—a break above this could signal a larger rally. Also, keep an eye on Bitwise’s ETF filing, with a decision expected in Q4 2025, as it could be an important regulatory milestone.

What is the latest news about AVAX?

Avalanche is gaining momentum with growing institutional support and key technical advancements. Here are the latest updates:

1. PYUSD Stablecoin Launches on Avalanche (September 18, 2025) – PayPal’s stablecoin is now available on Avalanche through LayerZero, improving cross-chain liquidity.
2. KRW1 Won-Pegged Stablecoin Debuts (September 17, 2025) – South Korea’s BDACS releases a regulated stablecoin on Avalanche, backed by Woori Bank.
3. Grayscale Files for AVAX ETF (September 16, 2025) – Approval could bring significant institutional investment, pending SEC review.

Deep Dive

1. PYUSD Stablecoin Launches on Avalanche (September 18, 2025)

Overview: PayPal introduced PYUSD0, a version of its USD-backed stablecoin, on Avalanche along with seven other blockchains. This uses LayerZero technology for smooth cross-chain transfers without relying on centralized middlemen.

What this means: This is a positive development for AVAX. It strengthens Avalanche’s role in the stablecoin market, which is expected to grow to $2 trillion by 2028. PayPal’s choice shows confidence in Avalanche’s fast transaction speed (4,500 transactions per second) and its ability to meet regulatory requirements, potentially attracting more business users. (Bitget)

2. KRW1 Won-Pegged Stablecoin Debuts (September 17, 2025)

Overview: BDACS, a digital asset company based in Seoul, launched KRW1, a stablecoin pegged 1:1 to the South Korean won, on Avalanche. The stablecoin is regulated, with reserves held at Woori Bank and transparency verified through APIs.

What this means: This is somewhat positive for AVAX. It confirms Avalanche’s capability to handle regulated real-world assets (RWAs). However, South Korea’s upcoming stablecoin regulations (expected in October 2025) could create short-term compliance challenges. The stablecoin is expected to be used for remittances and government payments. (MEXC)

3. Grayscale Files for AVAX ETF (September 16, 2025)

Overview: Grayscale has resubmitted its application to convert its Avalanche Trust into a spot ETF, with Nasdaq suggesting the ticker “AVAX.” The SEC’s decision will likely depend on previous approvals for Bitcoin and Ethereum ETFs.

What this means: This is cautiously optimistic. ETF approval could increase institutional demand for AVAX. However, recent discounted sales of AVAX by the Avalanche Foundation (raising $500 million in 2024) might limit price gains. AVAX is still trading about 75% below its all-time high from 2021, so there is potential for growth if the ETF is approved. (Bitget)

Conclusion

Avalanche is solidifying its position in stablecoin innovation and regulated real-world assets, with the possibility of an ETF approval on the horizon. With PayPal and South Korea’s KRW1 stablecoin adopting Avalanche, AVAX is bridging traditional finance and decentralized finance. The key factors to watch are the SEC’s ETF decision and South Korea’s stablecoin regulations expected in October.