Avalanche saw a considerable rise in stablecoin supply over the previous year, however the onchain implementation of this capital indicate passive financier habits, which might be restricting need for the network’s energy token.
The stablecoin supply on the Avalanche network increased by over 70% over the previous year, from $1.5 billion in March 2024, to over $2.5 billion since March 31, 2025, according to Avalanche’s X pos
Market capitalization of stablecoins on Avalanche. Source: Avalanche
Stablecoins are the primary bridge in between the fiat and crypto world and increasing stablecoin supply is frequently viewed as a signal for inbound purchasing pressure and growing financier cravings.
Nevertheless, Avalanche’s (AVAX) token has actually remained in a drop, dropping almost 60% over the previous year to trade above $19 since 12:31 pm UTC, regardless of the $1 billion boost in stablecoin supply, Cointelegraph Markets Pro information programs.
AVAX/USD,1- year chart. Source: Cointelegraph Markets Pro
” The obvious contradiction in between rising stablecoin worth on Avalanche and AVAX’s considerable rate decrease most likely originates from how that stablecoin liquidity is being held,” according to Juan Pellicer, senior research study expert at IntoTheBlock crypto intelligence platform.
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A “considerable part” of these inflows includes bridged Tether (USDT), the research study expert informed Cointelegraph, including:
” This appears as non-active treasury holdings instead of capital actively released within Avalanche’s DeFi community (a minimum of for the time being). If these stablecoins aren’t being utilized in loaning, switching, or other DeFi activities that would normally drive need for AVAX (for gas, security, and so on), their existence alone would not always enhance the AVAX rate”
The AVAX token’s sag comes throughout a broader crypto market correction, as financier belief is pressed by worldwide unpredictability ahead of United States President Donald Trump’s mutual import tariff statement on April 2, a step focused on minimizing the nation’s approximated trade deficit of $1.2 trillion.
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70% possibility for crypto market to bottom by June: Nansen experts
Nansen experts anticipate a 70% possibility that the crypto market will bottom in the next 2 months leading into June as the continuous tariff-related settlements development and financier issues are minimized.
” When the most difficult part of the settlement lags us, we see a cleaner chance for crypto and danger possessions to lastly mark a bottom,” Aurelie Barthere, primary research study expert at the Nansen crypto intelligence platform, informed Cointelegraph.
Both conventional and cryptocurrency markets continue to do not have upside momentum ahead of the United States tariff statement.
BTC/USD, 1-day chart. Source: Nansen
” For the primary United States equity indexes and for BTC, the particular rate charts stopped working to resurface above their 200-day moving averages substantially, while lower-lookback rate moving averages are falling,” composed Nansen in an April 1 research study report.
Publication: Bitcoin ATH quicker than anticipated? XRP might drop 40%, and more: Hodler’s Digest, March 23– 29