The digital asset market is experiencing heightened activity, with Avalanche's native token, AVAX, seeing a significant price increase. This surge is primarily driven by substantial institutional support, including an expanded collaboration with BlackRock, and increasing optimism regarding potential Exchange-Traded Fund (ETF) approvals. These developments signal a maturing cryptocurrency market and a greater integration of digital assets into traditional financial systems.
BlackRock, a global investment management leader, has extended its USD Institutional Digital Liquidity Fund (BUIDL) to the Avalanche blockchain through a partnership with Securitize. Announced on August 9, 2025, this move represents a strong endorsement of Avalanche's capabilities in tokenizing real-world assets (RWAs). The BUIDL fund, which focuses on cash, U.S. Treasury bills, and repurchase agreements, is now the world's largest tokenized treasury fund, accessible on Avalanche. This integration highlights Avalanche's robust infrastructure, including its EVM compatibility, rapid transaction finality, and low fees, which are attractive to institutional investors. Further boosting confidence in the Avalanche ecosystem, VanEck launched a $100 million real-world asset (RWA) fund in May 2025 specifically for AVAX projects, aiming to invest in tokenized Web3 projects and RWA products on Avalanche. These institutional inflows have coincided with a rise in decentralized finance (DeFi) activity on Avalanche, with total value locked (TVL) showing a significant increase as of August 7, 2025, according to DeFiLlama. Avalanche's subnet architecture and high transaction throughput have made it a preferred network for developers in DeFi, GameFi, and institutional blockchain initiatives.
Market sentiment is further supported by Bloomberg analysts' projections, which estimate a 90% probability of AVAX ETF approval by December 2025. The success of Bitcoin ETFs has set a precedent for other digital assets. The potential approval of an AVAX ETF could attract further institutional investment, improving liquidity and market stability. Technically, AVAX shows bullish momentum, with its Relative Strength Index (RSI) at 56.16 and the Moving Average Convergence Divergence (MACD) indicating positive momentum. AVAX is trading above its 7-day and 20-day Simple Moving Averages, with Bollinger Bands suggesting potential for further price increases. Key support levels are identified at $20.57 and $16.26, with resistance anticipated around $27.38. The current trading price is $24.04, with a 24-hour trading range between $23.26 and $24.63. Despite trading below its 52-week high of $53.98, the combination of institutional adoption, increased DeFi activity, and ETF optimism provides a strong outlook for sustained growth, positioning Avalanche as a key player in the evolving digital asset landscape.