Why Avalanche (AVAX) Price Is Still Under $27?

Avalanche’s on-chain growth hit new highs in Q3 2025. The market cap of tokenized real-world assets (RWAs) on Avalanche surged 58% to $305.25 million across 39 instruments.

In parallel, stablecoin transfers on the network jumped roughly sixfold over three months. Also, Avalanche’s stablecoin ecosystem swelled.

The stablecoin market value on Avalanche rose 30% to $2.68 billion in 30 days. Yet the AVAX price has not kept pace.

After peaking near $27 on July 28, AVAX has since traded in a lower range under that level.

Avalanche RWA Market Cap Hits Record High

Avalanche’s tokenized asset market is booming. Official on-chain data shows the RWA market cap (total value of tokenized bonds, loans, and other assets) jumped to $305.25 million.

That’s up about 58% in 30 days. RWA holders on Avalanche are now 7,725 (up modestly) across 39 different assets.

Third-party analytics confirm this surge. RWA.xyz reports $355.23 million in tokenized assets on Avalanche as of Sept. 5, an 85% gain over 30 days.

The majority of Avalanche’s tokenized value is in stablecoin issuers and tokenized dollar funds. For instance, Circle’s USD Coin and Tether are the top RWA protocols on Avalanche.

This jump in RWA value reflects growing institutional use cases. Several new projects and asset managers have launched on Avalanche’s chains.

For instance, Grove Finance, an institutional credit protocol, announced a launch with a target of $250 million in RWAs on Avalanche.

Established finance firms are also joining: Franklin Templeton has tokenized a money-market fund on Avalanche.

Centrifuge has brought tokenized credit instruments, like a $100 million short-term loan, to the network.

In short, Avalanche is attaining recognition as a bridge between DeFi and traditional finance. On-chain data lists Franklin Templeton, Grove Finance and Centrifuge among active participants in Avalanche’s RWA ecosystem.

These figures mark all-time highs for Avalanche’s RWA footprint. As more credit funds and bond issuers come on chain, the value of tokenized real-world assets on Avalanche is poised to grow further, even as the native token price lags.

Stablecoin Transfer Volume Surges

Stablecoins have also seen explosive activity on Avalanche. Over the past three months, total stablecoin transfers on Avalanche increased roughly 6X.

This means trillions of dollars worth of USD-pegged tokens have moved over Avalanche’s chains, reflecting heavy use in trading and payments.

The chain supports a dozen major stablecoins (including bridged USDT, USDC, DAI, etc.), and all of them saw sharp higher flows.

Consistent with this usage, the aggregate stablecoin market cap on Avalanche has climbed to about $2.68 billion, up roughly 30% month-on-month.

Stablecoin holders on Avalanche are now about 3.44 million wallets (up 0.9% in 30d). In other words, Avalanche is absorbing nearly $3 billion of circulating stablecoins, second only to a handful of larger L1s.

Avalanche’s growing stablecoin ecosystem is driven by both DeFi usage and institutional money-market funds.

Asset managers like Franklin Templeton and WisdomTree have issued tokenized funds on Avalanche that use stablecoins as underlying liquidity.

AVAX Price Consolidation Under $27

Despite these on-chain milestones, AVAX price action has been subdued in recent weeks. Over the past month (as of early Sept. 2025), AVAX rose only 9.9% and has “cooled” back below its July peak.

On July 28 AVAX briefly reached $27.00, but in August it stalled. Through August and early September, AVAX price mostly traded in the mid-$20 range.

It traded roughly between $22–$26, failing to sustain a breakout above its July high.

Technically, AVAX remains in a broadly bullish structure (it is trading above its SuperTrend support), but momentum indicators have weakened.

Recent readings show a negative momentum reading (–0.66), indicating buyers have lost some strength.

Analysts note key technical thresholds: a sustained move above $25.50–$26.00 could signal a new leg higher, roughly a 5% jump.

Conversely, a break below $25.00 support might invite a retest of $23.00, with a further drop toward $21.00 if selling intensifies.

Meanwhile, open-interest and futures volume on Avalanche have jumped: total AVAX futures volume recently topped $1.02 billion, according to CryptoQuant, a fresh high.

Funding rates in derivatives have ticked slightly positive, about 0.0058%, suggesting more longs than shorts.