Institutional investors buy AVAX as retail falls and rates soar
- Avalanche blockchain fees surge 116%
- Retail investor interest in AVAX drops 74%
- Whales accumulate more than US$ 22 million in AVAX
The Avalanche (AVAX) blockchain is undergoing a major shift in the profile of its participants. While retail investors are quietly retreating, large institutional players are stepping up their presence, directly impacting the network’s volume and fees.
According to report According to Nansen, AVAX transaction fees have jumped 116% in the past seven days to $243.280, driven by high-volume transactions attributed to whale wallets. Despite the increase in fees, the network is facing a significant drop in the number of active users, down 74% to around 414 addresses. Transactions have also shrunk by 34% to just under 3 million.
Despite the retail retraction, the data shows a clear movement by large investors. In just 24 hours, whales acquired US$10,62 million in AVAX — a volume close to the year's record, set in April. This week alone, the accumulation exceeded US$22,96 million on centralized platforms, indicating that part of the institutional market sees current prices as an opportunity.
The movement on decentralized exchanges also shows strength. The trading volume of AVAX on DEXs reached US$ 161 million, signaling that the asset still maintains appeal even outside of traditional brokerages.
On the technical chart, AVAX is facing significant resistance at $26,47. If it breaks this level, the token could reach $41,90 — a 58% increase. The strength of this movement, however, depends directly on the continuation of institutional purchases and support in the spot market.
Otherwise, the cryptocurrency may return to the ascending triangle pattern, where it has remained in previous periods, consolidating a lateralization zone below the resistance. The drop in engagement from small investors adds a component of uncertainty to the asset's short-term trajectory.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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