Avalanche Contracts Triple in a Year: Bullish for AVAX?

In Brief

• Avalanche contracts surged from 14M to 44M in 12 months, showing strong developer growth.
• AVAX trades near $29.9 after a 71.5% rally, supported by a $675M SPAC merger deal.
• DEX volume hit $40B in 3 months, reinforcing Avalanche’s expanding DeFi ecosystem strength.
  

Avalanche has recorded a remarkable surge in on-chain activity, with smart contract deployments tripling year over year. According to Routescan, total cumulative contracts reached 44,094,327 in October 2025, up from nearly 14 million a year earlier.

The steep rise began around March 2025, accelerating through midyear before stabilising near the 44 million level. This growth highlights the expanding participation of developers, increased network usage, and broader ecosystem adoption across decentralised applications.

Strong contract deployment numbers often indicate a healthy blockchain ecosystem and sustained user engagement. If this growth continues, it could support a long-term bullish outlook for $AVAX, driven by ongoing innovation and network utility.

Furthermore, Avalanche’s consistent developer traction complements rising transaction volume and greater liquidity activity across the network. The blockchain’s expansion into multiple financial and institutional avenues further strengthens its market positioning.

Can Institutional Growth Fuel Avalanche’s Momentum?

As of October 2, 2025, Avalanche ($AVAX) trades near $29.9, reflecting a 71.5% increase since July. Its fully diluted valuation (FDV) stands at $13.6 billion, supported by accelerating institutional engagement.

A key factor in this rally is Avalanche Treasury Co.’s $675 million SPAC merger with Mountain Lake Acquisition Corp. The deal aims to enhance liquidity and fund a $1 billion AVAX buyback through two planned U.S. treasuries.

Additionally, filings from Bitwise and Grayscale for Avalanche ETFs highlight growing institutional demand. AVAX One’s $550 billion token acquisition plan further underscores increasing market confidence in Avalanche’s long-term prospects.

According to DefiLlama, Avalanche also added $40 billion in DEX trading volume over the past three months. The rise signals growing liquidity within the network’s DeFi ecosystem.

Technically, the AVAX/USDT charts show a bullish formation, with short-term resistance near $37–$40 and potential breakout targets around $75–$80. Supported by expanding contracts, inflows, and favourable technicals, Avalanche continues to demonstrate resilience and long-term growth potential.