Avalanche On-Chain Activity Hits Record High, But AVAX Price Stuck at 2021 Levels
Avalanche (AVAX), a major layer-1 blockchain, is experiencing a dramatic uptick in on-chain activity—yet its market price continues to lag. Despite reaching record levels of user engagement and institutional adoption, AVAX is still trading at prices last seen in 2021, raising questions about whether the token is undervalued or facing deeper market disconnects.
Avalanche’s On-Chain Metrics Soar
According to Artemis, daily active wallets on Avalanche’s C-Chain recently topped 100,000, eclipsing figures from late 2021 when AVAX hit its all-time high of $147. Meanwhile, Token Terminal reports a jump in monthly active wallets from under 500,000 to over 2.2 million—a nearly fivefold increase in just one month.
This explosion in on-chain activity is drawing attention from analysts and investors alike. Industry observers credit the launch of the MapleStory Universe blockchain game and the use of BlackRock’s tokenized U.S. Treasury product (sBUIDL) as collateral on the Avalanche-based Euler protocol for sparking the recent surge.
“This growth isn’t speculative—it’s functional,” noted Wu Blockchain. “Real users, real use cases, and growing institutional experimentation are driving the activity.”
AVAX Price Remains Disconnected
Despite the strong fundamentals, AVAX is still priced around $21, down more than 60% from its late-2024 high and hovering near levels seen in 2021. The dissonance between on-chain performance and token price has sparked debate within the crypto community.
Some investors see this as an opportunity. Trader Crypto Pirates believes AVAX has entered a demand zone and could rebound if market sentiment improves.
“AVAX tapped into my daily demand level. From here, we can plan longs all the way to the weak high,” they noted.
Investor Hasan offered a longer-term view, highlighting that AVAX appears to be re-entering a historically significant accumulation zone.
“It seems to be attracting demand around the $16–$18 range. If Bitcoin corrects in June, we could see AVAX revisit this zone. For those with a long-term outlook, it may be worth monitoring closely.”
What’s Holding AVAX Back?
Despite strong fundamentals, two headwinds are keeping AVAX from breaking out. First, the SEC’s delay of the AVAX ETF application has suppressed broader investor enthusiasm. Second, the current altcoin market remains muted, with Bitcoin dominance still above 63%, limiting capital rotation into smaller tokens.
These macro factors have stalled AVAX’s momentum, even as on-chain activity suggests growing network value.