Should You Buy Avalanche in 2025?

Avalanche in brief

How much does 1 Avalanche cost?

The price of Avalanche is up this week. Currently, Avalanche is trading at £27.52, showing a 24-hour increase of 1.9% and a 7-day gain of 8.3%. The market capitalisation stands at approximately £10.18 billion, placing Avalanche at rank 12 among all cryptocurrencies.

The average daily trading volume over the past 3 months is about £390 million, with a circulating supply of 369 million AVAX tokens and a market dominance of 0.54%.

With its recent growth and active trading, Avalanche continues to attract attention as a dynamic option in the crypto sector, but investors should remain mindful of its inherent volatility.

Our complete opinion on the Avalanche cryptocurrency

Have recent advances in Avalanche truly marked the dawn of a new era for scalable and decentralised finance? Over the past three years, we’ve systematically analysed the evolution of Avalanche, integrating on-chain analytics, technical trading signals, market sentiment, and competitive dynamics using proprietary algorithms. So, why might Avalanche once again represent a strategic entry point for the smart contract and layer-1 ecosystem in 2025?

Recent Performance and Market Context

Price Evolution

Coming off a volatile but robust three-year trajectory, Avalanche (AVAX) has demonstrated remarkable resilience and upside momentum. After its explosive growth in 2021, Avalanche underwent a healthy consolidation phase, mirroring the broader digital asset market. At the time of writing, AVAX consolidates in the $34–$38 USD range, nearly tripling from multi-year lows observed during mid-2022, and outperforming several peer layer-1 assets on a relative basis YTD 2024.

Positive Recent Events

The last twelve months have seen a series of decisive, bullish milestones for Avalanche:

• Core upgrades to the consensus engine, reducing block finality times and transaction fees.
• Extensive onboarding of new institutional staking partners, including major European banks piloting onchain collateralisation with Avalanche subnets.
• Accelerated deployment of enterprise-focused subnets, especially in the tokenised securities and real-world assets (RWA) domain—expanding Avalanche’s use-case breadth beyond DeFi.

Notably, the ongoing “Avalanche Rush” incentive program has triggered renewed liquidity inflows into DeFi protocols built on AVAX, fuelling both total value locked (TVL) and organic developer activity.

Favourable Macro/Sector Context

The overall sentiment for digital assets in 2024 is notably improved, underpinned by:

• Regulatory clarifications in the UK, Europe and Asia facilitating institutional exposure to major blockchains.
• The rapid rebound of global risk assets as interest rates stabilise, creating a compelling environment for speculative and growth-centred markets such as crypto.
• Expanding appetite among traditional finance and asset managers for exposure to scalable, cost-effective blockchains with real utility—conditions to which Avalanche is structurally well positioned.

Technical Analysis

Key Crypto Indicators

Our proprietary algorithms synthesise technical data, revealing high-conviction signals:

• RSI: Currently neutral-to-slightly oversold (48–52 on the daily), suggesting room for further upside without overextension.
• MACD: Turning positive on both daily and weekly timeframes, with the histogram printing higher lows—clear signs of waning bearish momentum and budding bullish trend.
• Moving Averages: The 50-day moving average is converging upwards towards the 200-day, with a near-term golden cross scenario likely if current price structure persists.

Strong Support Zones and Reversal Signals

• Firm support has developed at $29–$32 USD, coinciding with prior high-volume nodes and Fibonacci retracement levels.
• Several technical setups (higher lows, descending wedge breakout, increased on-chain transfer activity) signal a meaningful reversal is underway, paving the way for a new medium-term bullish wave.

Short/Mid-term Structure and Momentum

The ongoing squeeze in volatility and the healthy reset of speculative leverage point to an imminent expansion phase—potentially mirroring prior AVAX bull cycles that delivered >100% moves over 3–5 months. The momentum profile, reinforced by on-chain wallet growth, suggests a favourable risk/reward outlook heading into H2 2024.

Fundamental Analysis

Adoption and Strategic Partnerships

Avalanche’s fundamentals appear increasingly robust, supported by:

• Accelerating developer ecosystem: Over 1500 active developers, +30% YoY growth (Token Terminal, April 2024).
• Blue-chip partnerships: Collaborations with JP Morgan’s Onyx, Deutsche Telekom, and, more recently, the deployment of flexible subnets by the Australian Stock Exchange for tokenised bonds.
• Rising user traction: Daily active addresses and smart contract deployments are at all-time highs for the AVAX mainnet and its flexible subnet architecture.

Attractive Relative Valuation

• Market Capitalisation: At ~$13.5 billion, AVAX ranks within the top 10 layer-1 assets, yet trades at a discount versus peers such as Solana and Ethereum on a TVL/FDV basis.
• Total Value Locked (TVL): >$1.2 billion TVL (DefiLlama, June 2024), consistently top-5 among alt-L1s, and growing faster than lagging ecosystems.
• Fully Diluted Valuation (FDV) remains fundamentally sound relative to developer-reported roadmap timelines and token emission schedules, underpinning sustainable incentive alignment.

Structural Advantages

• Technological Differentiation: The Avalanche consensus protocol delivers sub-second finality and supports flexible subnets—key advantages for enterprise, gaming, RWA and DeFi verticals.
• Community and Ecosystem: An engaged global community (Discord, Twitter, Avalanche Summit events), plus proactive ecosystem funding via the $200m “Blizzard” fund, fuel ongoing innovation and market share gains.
• Market Positioning: Avalanche’s capacity to host highly scalable, customisable subnets uniquely positions it for the nascent tokenisation and modular blockchain supercycle anticipated in 2025–2026.

Volume and Liquidity Metrics

• Exchange Volume: Daily spot volumes exceed $900 million across CEX and DEX venues, a strong indication of sustained investor enthusiasm and deep orderbook liquidity.
• Order Book Depth: Liquidity is robust on both the USD and USDT pairs, with thin slippage reported up to multi-million dollar volumes.
• Market Cap Dominance: AVAX is maintaining its slot among the top ten, with rising dominance metrics vs. “ETH killers,” reflecting broad-based market conviction.

Positive Catalysts & Growth Outlook

• Upcoming Protocol Upgrades: “Cortina” upgrade scheduled for Q3 2024, further reducing finality times and enabling new cross-chain application designs.
• Major Integrations: Ongoing deployments of top-tier DeFi protocols (Aave, Curve, GMX) and enterprise tokenisation projects continue to labour-law Avalanche’s network effects.
• Institutional Adoption: Growing interest from TradFi and asset tokenisation platforms, with multi-billion dollar partnerships in early proof-of-concept phases.
• Regulatory Tailwinds: The UK’s evolving crypto-asset framework encourages compliant institutional experimentation with Avalanche-based assets.

Investment Strategies by Horizon

Short-Term (next 3–6 months)

• Entry on Pullbacks: Technical support at $32–$34 USD constitutes a strong accumulation zone for tactical traders.
• Event-Driven Trades: Positions established in anticipation of the Cortina upgrade or new subnet launches could capture upside volatility.

Medium-Term (6–24 months)

• Buy-and-Hold on Development Trajectory: Continued adoption of subnets and DeFi protocols, alongside growing on-chain economic activity, support sustainable appreciation.
• Positioning Before Major Institutional Partnerships: Novel integrations with real-world asset issuers and TradFi incumbents can serve as powerful re-rating events.

Long-Term (3+ years)

• Modular Blockchain Thesis: Avalanche’s unique architecture, poised to benefit from the ongoing modularisation of blockchain infrastructure, offers exposure to the next wave of crypto adoption.
• Layer-1 and Enterprise Tokenisation Hedge: For sophisticated investors seeking to diversify away from monolithic L1 architectures (such as Ethereum), Avalanche appears well-placed to capture “picks-and-shovels” value in tokenisation, DeFi composability, and permissioned enterprise chains.

Is Now the Right Time to Consider Avalanche?

Avalanche combines surging developer activity, strong technical momentum, robust liquidity, and an expanding institutional use-case footprint—all while trading at a relative discount to less-innovative peers. The convergence of key protocol upgrades, surging DeFi/NFT adoption, and a new regulatory permissiveness paints a picture of outsized opportunity over the next cycle. Forward-looking investors may find that Avalanche’s unique blend of scalability, flexibility, and ecosystem dynamism justifies a renewed strategic interest—particularly as it stands primed to capture the next wave of institutional and retail adoption across both the DeFi and enterprise blockchain sectors.

Avalanche remains a high-volatility cryptocurrency offering substantial opportunities for dynamic investment, demanding disciplined risk management. The recent price acceleration highlights Avalanche's capacity for rapid, sustained moves—a trend likely to continue as macro conditions evolve and technical innovation accelerates. Key technical levels to monitor are $32 USD as immediate support, and $39.50 USD as a major resistance. The upcoming Cortina protocol upgrade in Q3 2024 could act as a critical catalyst for Avalanche’s future trajectory.

How to buy Avalanche?

It’s easy and secure to buy Avalanche (AVAX) online through a regulated platform in the UK. There are two main methods: spot buying, where you directly own AVAX tokens, and trading crypto CFDs, which lets you speculate on Avalanche’s price without owning the coin itself. Each method has its own advantages, risks, and costs. To help you choose the approach that suits you best, a detailed comparison of leading platforms is available further down this page.

Spot Buying

Spot buying Avalanche means you purchase and directly own AVAX coins, which you can hold in your own crypto wallet. This method gives you full ownership and control. Typically, platforms charge a fixed percentage fee per transaction, often around 0.5%–1%, paid in GBP.

Example

If Avalanche is priced at £25 per coin and you invest £1,000, you can acquire approximately 40 AVAX coins (after allowing for about £5 in transaction fees).

✔️ Gain Scenario

If the price of AVAX rises by 10%, your portfolio would now be worth £1,100. That’s a £100 gross gain, representing a 10% return on your investment.

Trading via CFD

Trading Avalanche via CFDs (Contracts for Difference) doesn’t involve owning AVAX coins; instead, you open a position on its price movement. This offers flexibility, including the ability to use leverage, but you pay a spread (the difference between buy and sell price), plus overnight financing costs if you keep positions open.

Example

You open a CFD position on Avalanche with £1,000 and 5× leverage—this means you control a position worth £5,000 on the market.

✔️ Gain Scenario

If AVAX’s price rises by 8%, your leveraged position gains 8% × 5 = 40%. That’s a £400 gain on your £1,000 investment (excluding fees).

Important Reminder

Always compare the fees, features, and conditions of trading platforms before investing. The best choice depends on your investment goals, experience, and how much risk you’re willing to take. You’ll find a detailed platform comparison tool further down the page to help you make an informed decision.

Our 7 tips for buying Avalanche

The latest news about the Avalanche

London-based trading platform Revolut has announced expanded Avalanche (AVAX) trading access for UK users. On June 4, 2024, Revolut, one of the UK’s most popular fintech apps with millions of British users, began offering enhanced trading options for AVAX. This move is expected to significantly improve liquidity and visibility for Avalanche among UK retail investors, who can now more easily buy, sell, and hold AVAX directly through Revolut's user-friendly app. The platform’s strong compliance standards and widespread adoption in the UK bolster AVAX’s institutional credibility in a jurisdiction known for stringent financial regulation.

Global custody provider Zodia Custody, backed by Standard Chartered, has added support for AVAX, enabling UK institutional access. On June 6, 2024, Zodia Custody, whose UK-regulated setup targets institutional clients, announced support for Avalanche among its digital assets. This gives asset managers, funds, and corporates in the British market secure, compliant options to custody and manage AVAX, reflecting growing institutional interest. The addition underscores Avalanche’s maturing ecosystem and aligns with increasing demand from UK institutions for exposure to efficient, scalable blockchain networks under robust regulatory frameworks.

Avalanche’s partnership with WisdomTree enhances legitimacy amid FCA crypto ETP greenlight for sophisticated UK investors. Recent days have seen WisdomTree, a major global asset manager listed on the London Stock Exchange, continue to expand its range of crypto ETPs including those referencing AVAX. Following the FCA’s mid-May approval allowing crypto-backed ETPs for UK professional investors, WisdomTree’s promotion of its AVAX-linked products reinforces Avalanche’s standing with sophisticated London-based asset managers and wealth advisors, potentially boosting institutional inflows.

UK-based blockchain development firm Ava Labs has increased local hiring, strengthening tech capacity and project delivery within the Avalanche ecosystem. According to official statements released this week, Ava Labs’ UK subsidiary is expanding its team with several new hires in engineering, BD, and regulatory affairs. The move demonstrates the group’s commitment to both growth and compliance in the British market and enhances the development of tools and decentralized applications for UK-focused enterprise and financial clients using Avalanche technology.

The Avalanche Summit Europe, scheduled for later this month, records record registration interest from UK fintech delegates. Event organizers confirmed a significant rise in registrations originating from the UK, notably among regulated fintech startups and payment service providers. This surge signals mounting anticipation in the British innovation community around Avalanche’s subsecond settlement times and its potential for real-world asset tokenization, with UK-based delegations playing a leading role in upcoming ecosystem partnership announcements.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.