What Could Drive Avalanche (AVAX) After a 94% Drop From Its All-Time High?
Avalanche (AVAX) shows potential recovery drivers through institutional adoption, like Progmat's $2B migration, and technological advantages cited by VanEck.Summary
Avalanche (AVAX), having dropped over 94% from its all-time high, is being analyzed for potential catalysts that could drive a comeback by 2026. A major factor is the decision by Progmat, Japan's largest digital securities platform, to migrate over $2 billion in tokenized real-world assets (RWA) to Avalanche, validating its technology for regulated financial institutions.
Investment firm VanEck highlights Avalanche's core strength in its Snowman consensus mechanism, which offers 1.2-second block production and near-instant finality, significantly faster than Ethereum, providing practical advantages for financial use cases. Furthermore, Avalanche maintains lower transaction fees compared to competitors.
Despite these fundamentals, investor demand remains modest, as shown by the low initial inflows into the sole spot AVAX ETF compared to LINK and SOL ETFs. However, on-chain data shows positive momentum, with daily active addresses climbing to an all-time high in February, suggesting that strong underlying technology may attract capital when market sentiment shifts.
(Source：BeInCrypto)