Avalanche Network Activity Surges, Yet AVAX Price Drops 7.5%

Avalanche's network usage has surged recently, with daily active addresses on the Avalanche C Chain reaching 1.71 million on January 19, a record high. Previously, daily active addresses ranged from 300,000 to 600,000.

  • Avalanche has improved its cost-efficiency by 43 times over the past year.
  • In 2025, daily transactions increased by 153.6% to an average of 4.2 million.
  • Daily active addresses grew by 379.6% to 380,000.
  • Total transactions in 2025 reached 1.45 billion, up 152.9% from 2024.
  • The network maintains fast finality (about two seconds), low fees, and a throughput above 4,500 transactions per second.

AVAX Price Drops Despite Network Strength

Despite increased on-chain activity, the AVAX token's price fell amid a broader crypto market downturn. On January 19, AVAX was trading at around $12.59, down 7.5% for the day. The token has been declining since hitting $35 in September last year, losing about $9.44 billion in market cap, which is now approximately $5.43 billion. AVAX ranks 20th by market cap.

Potential Market Movements

  • AVAX is at its weakest momentum since the 2022-2023 bear market low.
  • Currently trading below the mid Bollinger Band (20-day SMA), with price nearing the lower band near $12.
  • If AVAX drops below $12, it may fall toward $10.50.
  • The RSI is below neutral but not extreme. A rise above $13.80 could push the price to the upper Bollinger Band around $15.
  • A close above $16 would signal a trend reversal and potential rally.

AVAX price chart with RSI and Bollinger Bands | Source: TradingView