Avalanche (AVAX) recently witnessed a notable $6.5 million Ethereum (ETH) capital inflow via Bridged Netflow within 24 hours, signaling growing interest from institutional and large-scale investors. Despite this bullish indicator, AVAX’s price dropped **2.6%** to $18, compounding weekly and monthly losses of 13% and 19%, respectively. This divergence between capital movement and price action sparks debate: Will the inflow catalyze a rebound, or is stagnation imminent?
Key On-Chain Activity Highlights
- Daily Transactions: Surged to 1.3 million—a three-month peak—demonstrating heightened network usage.
- Active Addresses: Reached June’s highest level, confirming organic user engagement beyond bot-driven activity.
👉 Why institutional investors are eyeing Avalanche
However, DeFi metrics paint a contrasting picture:
- DEX Trading Volume: Plunged to ~$5 million (lowest in 3 months), reflecting reduced trader activity.
- Stablecoin Supply: Fell sharply to $1.1 billion, indicating weaker demand for stable assets on Avalanche.
Market Sentiment and Future Outlook
ETH-to-AVAX capital flows suggest latent accumulation by savvy investors, potentially priming AVAX for a rally. Yet, declining DeFi engagement and stablecoin liquidity pose short-term headwinds. The pivotal question remains: Can Avalanche convert rising on-chain activity into sustained price recovery, or will subdued DeFi metrics prolong its downtrend?
FAQ Section
Q: What does the $6.5 million ETH inflow mean for Avalanche?
A: It signals institutional interest but doesn’t guarantee immediate price gains, especially with mixed on-chain signals.
Q: Why is AVAX’s price falling despite high transactions?
A: Declining DeFi volume and stablecoin supply offset transaction growth, pressuring prices.
Q: Could ETH investors trigger an AVAX rally?
A: Yes, if buying persists and DeFi metrics rebound. Currently, the trend lacks full confirmation.
👉 How to track Avalanche’s real-time metrics
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