Avalanche Activity Explodes to Record High—So Why Is AVAX Still Falling?

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• Avalanche just recorded its highest daily active address count ever.
• AVAX price continues to lag despite strong network fundamentals.
• $12 support is critical, with $16 marking a potential trend reversal level.

Avalanche is sending mixed signals to the market. On-chain activity across the network has surged to record levels, yet its native token, AVAX, continues to slide amid broader crypto weakness. The contrast highlights a growing disconnect between network usage and short-term price performance.

On Jan. 19, daily active addresses on Avalanche’s C-Chain climbed to roughly 1.71 million, the highest level ever recorded. Until recently, address activity typically ranged between 300,000 and 600,000. The sudden jump points to a sharp increase in transactions, application usage, and on-chain interactions.

Network Efficiency and Usage Continue to Improve

Avalanche’s growth isn’t limited to wallet activity. Over the past year, the network has become dramatically more efficient, with transaction costs dropping by more than 40x. Faster finality—around two seconds—combined with low fees and throughput exceeding 4,500 transactions per second continues to attract users and developers.

Transaction metrics reinforce this trend. Daily transaction counts have risen sharply year over year, while total annual transactions are now well into the billions. These gains suggest Avalanche’s infrastructure is scaling effectively, even during periods of market stress.

AVAX Price Struggles During Market Selloff

Despite strong fundamentals, AVAX has failed to escape the latest market downturn. The token fell sharply on Jan. 19, briefly trading near $12.59 after a broad crypto selloff. That move extended a longer downtrend that began after AVAX peaked above $35 last September.

Since that high, Avalanche’s market capitalization has dropped by more than $9 billion, pushing the token near the lower end of the top 20 cryptocurrencies by value. The decline reflects cautious sentiment across altcoins rather than project-specific weakness.

Technical Levels Point to a Critical Zone

From a technical perspective, AVAX is trading below its 20-day moving average and near the lower Bollinger Band, an area often associated with heightened selling pressure. Momentum indicators show weakness, though not yet at extreme levels.

Also Read: Why XRP Is Emerging as One of the Hottest Crypto Trades of 2026

If AVAX fails to hold support around $12, analysts warn a move toward the $10.50 area could follow. On the upside, a recovery above $13.80 would improve short-term structure, while a daily close above $16 could signal a more meaningful trend reversal.

Fundamentals vs. Price: A Growing Gap

Avalanche’s recent data highlights a familiar crypto pattern: strong network growth doesn’t always translate into immediate price gains. While AVAX remains under pressure, rising usage and improving efficiency suggest the network itself is gaining traction—setting the stage for sharper moves once market conditions stabilize.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.