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Alex Navarro
Alex Navarro

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Avalanche +11%: ETF and Staking Narrative Drives Repricing

AVAX ($AVAX) opened 2026 as a notable outlier, rising +11% in 24 hours while BTC ($BTC) and ETH ($ETH) posted only marginal gains. This movement reflects a structural shift in institutional positioning rather than speculative noise.

Institutional Developments

Grayscale recently filed an updated S-1 with the SEC to convert its Avalanche Trust into a spot AVAX ETF with staking. Key details:

  • Up to 70% of holdings may be staked.
  • Staking rewards are distributed to investors.
  • Combines beta exposure with yield in a regulated wrapper.

VanEck has filed a similar proposal, and Bitwise included AVAX in a broader altcoin ETF application set. If approved, AVAX could become one of the first Layer-1 tokens with staking yield embedded directly in ETF exposure.

Network and Adoption Metrics

Avalanche continues to show strong adoption and real usage:

  • Over 400M C-Chain transactions recorded in 2025.
  • Launch of TheGrottoL1 on mainnet.
  • Introduction of Avalanche 9000 L1 tooling cohort.
  • Integration with Whitewallet enables retail access with low fees and fast finality.

These are concrete usage signals, not roadmap promises.

Market Activity and Technicals

  • 24h trading volume surged +140% to ~$546M, indicating real market participation.
  • AVAX reclaimed short-term moving averages and is testing $13.20–$13.50 resistance.
  • Acceptance above this zone could target $15.60 and then $20.00 on higher timeframes.
  • Failure to hold may lead to a pullback to $12.32.

Conclusion

AVAX is being repriced as a yield-bearing institutional asset, moving beyond the conventional Layer-1 speculative trade. Institutional adoption, staking integration, and strong network metrics underpin this new valuation narrative.
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