Is this the number 1 candidate for the altcoin season 2025?

As the global crypto market gradually bounces back after a prolonged correction phase, an optimistic sentiment is returning to investors. Many analysts believe that an altcoin season — a time when cryptocurrencies other than Bitcoin experience breakout growth — may soon begin.

In this context, Avalanche (AVAX) is emerging as a leading potential candidate, thanks to the increasingly evident support from traditional financial institutions and strategic moves in the process of expanding its ecosystem. By continuously improving its technological infrastructure and expanding key partnerships, Avalanche is reinforcing its position as a high-performance blockchain platform ready to ride the next growth wave of the market.

Bounce back: AVAX rises over 15% in the week

As we enter the second half of 2025, AVAX is experiencing impressive growth, with a trading price of 24.64 USD, equivalent to an increase of over 15% in just 7 days. This movement is seen as a clear signal that smart money is returning, especially for assets with a solid technological foundation and a systematic development strategy.

Unlike short-term speculative rallies, the current bounce back of AVAX is driven by structural movements, notably the increasing participation of major financial institutions. This is a factor that often plays a key role in reshaping market structures, creating a shift from speculation to targeted investment. In this context, Avalanche is emerging as a strategic choice for investors seeking long-term value in the crypto space.

Financial institutions "choose the right face to send gold"

A historic turning point for Avalanche occurred on August 8, 2025, when BlackRock – the world's largest asset management firm with over 10 trillion USD in assets under management – officially announced its selection of Avalanche as the second largest blockchain by total assets managed in the BUIDL fund.

BlackRock's BUIDL fund specializes in investing in tokenized traditional financial assets, particularly U.S. government bonds and fixed-income products in token form. The selection of Avalanche reflects BlackRock's strategic belief in the processing capability, security, and superior performance of this network – which is one of the few blockchains that has an optimal architecture for asset tokenization at an institutional scale.

Not stopping there, a series of other major names are also converging on the Avalanche ecosystem:

These strategic moves are not just simple cooperation agreements; they are creating a real liquidity push for AVAX. For instance, BlackRock alone has disbursed approximately 240 million USD into the Avalanche ecosystem in July 2025, contributing to reducing reliance on speculative capital and building a sustainable bridge for AVAX in the medium and long term.

From a potential blockchain, Avalanche is gradually transforming into the core infrastructure platform for the wave of global asset tokenization – a trend expected to reshape the global financial market in the coming decade.

AVAX ETF – The key to unlocking growth in 2026

One factor that is attracting special attention from investors is the potential launch of an ETF for AVAX – a development that is considered to be a historical turning point for Avalanche and the cryptocurrency asset market in general. According to a report from Bloomberg, the approval rate for the AVAX ETF in December 2025 is currently estimated to be as high as 90%, clearly reflecting the increasingly positive trend of legal openness towards practical application digital assets.

If approved, the AVAX ETF will become the first financial product to help institutional investors access AVAX through traditional channels – such as pension funds, mutual funds, or brokerage accounts – without the need to directly hold tokens on the blockchain. This could unleash a massive wave of capital from investors who were previously hesitant due to technical or legal barriers to entering the crypto space.

History has shown: After the Bitcoin ETF was approved in 2021, BTC surged by up to 65% within just a few months afterwards – a clear testament to the positive impact of traditional financial products paving the way for digital assets. A similar scenario could very well occur with AVAX if the ETF is approved by the end of this year.

However, the risk factors cannot be overlooked. In June 2025, Thailand issued a ban on several exchanges, causing the market to lose 5 important liquidity pools and fall into a state of high volatility. Nevertheless, Avalanche has shown outstanding resilience: AVAX trading volume increased by 27% just a few weeks after the ban, indicating that the network still maintains a stable appeal with quality capital flows.

The key factor during this period is the clarity of the legal framework regarding tokenized financial assets (RWA). This will be a prerequisite for attracting long-term capital from financial institutions, contributing to strengthening the position of Avalanche not only as a high-performance blockchain but also as the financial infrastructure of the future in the era of digital assets.

Analysis scenario

| Scenario | Detailed Explanation | | --- | --- | | ETF approved | Institutional capital flows will surge, especially from hedge funds and passive investments. This creates sustainable momentum and enhances liquidity. | | ETF delayed | Could make the market impatient, leading to short-term price adjustments and weakening investor confidence. | | RWA is widely recognized legally | Expanding practical application scale, helping Avalanche become the leading platform in real asset tokenization, attracting both traditional finance sectors. |

Technical Analysis of AVAX: Resistance at 27 USD and Levels to Watch

On the price chart, AVAX is approaching a significant resistance level at 27 USD – a price zone that has twice rejected upward momentum in July, indicating that this is a strong psychological and technical barrier. A clear breakout and a candle close above 27 USD will be a confirming signal for the formation of a new upward trend.

Notable support – resistance levels:

Technical indicators:

AVAX Price Chart | Source: TradingView## AVAX Price Forecast for 2026: 3 Possible Scenarios

Bullish scenario:

Discount scenario:

  • If it fails to break through the resistance at 27 USD and the ETF is delayed or rejected, AVAX may turn to decrease towards the strong support area at 21.62 USD, especially if the overall market becomes defensive or negative.

Base scenario (Neutral – most reasonable):

In the context of the crypto market in 2025 gradually bouncing back, Avalanche (AVAX) stands out as one of the promising candidates that could lead the upcoming altcoin growth wave. This project is gathering all the core factors to become the focal point of new capital flow:

Currently, the resistance level of 27 USD is a crucial test for AVAX. If it can decisively break this level, and the ETF is approved on schedule, AVAX has the potential to bounce back strongly and establish itself as one of the large-cap assets with the best performance in 2026.

Annie

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