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Avalanche (AVAX) is back in the spotlight, registering a sharp 16% weekly gain to become the fastest-growing top-10 blockchain ecosystem so far in April. The surge has caught the attention of investors and analysts alike, signaling a potential shift in market sentiment—despite ongoing headwinds in total value locked (TVL).
According to data from CoinMarketCap, AVAX’s recent rally has been driven by renewed interest across the decentralized finance (DeFi) sector. Avalanche’s DeFi TVL jumped 14.4% in the past month, outpacing major competitors including Ethereum, Arbitrum, Base, and Solana. Currently, the network boasts $1.63 billion in TVL and supports over 430 active protocols.
.@avax was the fastest-growing ecosystem (Within the Top 10) over the past month! pic.twitter.com/X3JV8TpF0D
— Emperor Osmo 🐂 🎯 (@Flowslikeosmo) April 12, 2025
This growth is notable, especially as Avalanche’s TVL had been in steady decline since early 2025—plunging from over $1.5 billion to under $1.1 billion by late March. However, a rebound in April has pushed TVL back above the $1.2 billion mark, breaking a three-month downtrend. Analysts suggest this turnaround is likely fueled by a combination of rising AVAX prices, user incentives, and reactivation of dormant protocols.
Despite broader market volatility, Avalanche’s ecosystem is showing signs of resilience. Its consistent developer activity and strategic positioning have made it a standout performer in early Q2 2025.
Technically, AVAX is attempting to break out of its recent downtrend. After bouncing from March lows near $16, it’s currently trading around $20. The next major resistance lies between $24 and $26, a range that has previously capped upward moves. A successful breach could open the door to retesting the $30 level—a key psychological and structural barrier last approached in February 2025.
While short-term consolidation may occur, the bullish momentum suggests that Avalanche could be gearing up for a sustained recovery. If the rally continues and TVL growth remains steady, AVAX might soon reclaim its position as a dominant force in the layer-1 space.
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.
Also Read: Crypto Forecast 2025: Avalanche, Cardano, and Stellar Predicted to Surge—Here’s Why
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
