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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.
