Avalanche surges, aiming for a bounce back of 60% after surpassing Ethereum and Solana in growth rate.

As of the time of this article, Avalanche (AVAX) is trading around the 29 USD level, recording an increase of 14.7% over the past three months and nearly 17% in just the past week. Notably, more than 12% of that comes from a strong breakout in the last 24 hours.

This impressive acceleration is putting AVAX on the same scale as top names like Ethereum and Solana. With outstanding growth momentum, along with optimistic technical signals, AVAX is expected to continue climbing an additional 60%, aiming for the 45 USD mark in the short term.

AVAX surpasses Ethereum and Solana in the RWA sector

The biggest driving force behind the recent price increase of Avalanche comes from the boom in the field of tokenization of real assets (RWA). These are traditional financial products such as investment funds or bonds that are digitized and put on the blockchain, making transactions more transparent, faster, and more accessible – not just for large institutions but also for individual investors.

Recently, the total value of RWA on Avalanche has surpassed 400 million USD. Although this figure is still modest compared to the market size, what is more noteworthy is the growth rate. In just 30 days, the value of RWA on Avalanche has increased by 139%, making this blockchain the fastest-growing chain in the RWA sector.

RWA rankings on top blockchains | Source: RWA.XYZWhen compared to its competitors, Ethereum still holds the top position with over 8.3 billion USD RWA, Polygon reaching over 1.1 billion USD, Solana nearly 497 million USD, Stellar around 533 million USD, and Arbitrum about 357 million USD. However, in terms of growth rate, Avalanche is far ahead of all: Ethereum only increased by 8.6%, Solana 2%, Stellar 12.8%, and Arbitrum 7.7% in the same period. This shows that Avalanche not only keeps pace with the "big players" like Ethereum and Solana but also outperforms other projects in the same segment like Stellar and Arbitrum.

Behind this breakthrough is the synergistic strength from strategic partners: Centrifuge – a unit building the credit system on the blockchain, Grove Finance – an institutional investment platform that has chosen Avalanche to deploy over 250 million USD into RWA, and especially the JAAA fund from Janus Henderson with total assets under management of 373 billion USD.

RWA growth on Avalanche | Source: XThese pieces do not operate in isolation but together create a complete RWA ecosystem, explaining why Avalanche is becoming a top growth hotspot in the race for real asset tokenization on the blockchain.

Capital flows confirm strong capital inflow into Avalanche

If the fundamental factors help outline the overall picture, then the technical indicators of cash flow provide a more detailed perspective.

Chaikin Money Flow (CMF) – a measure of money flow based on price and volume – has now reached its highest level since July, indicating that buying pressure is dominant. When CMF stays above the 0 threshold, it means that more capital is flowing into the market than flowing out, thereby reinforcing positive signals.

Chaikin Money Flow (CMF) of AVAX | Source: TradingViewMeanwhile, the Money Flow Index (MFI) – a tool that reflects buying and selling pressure – is also on the rise. The increase in MFI indicates that investors are continuously accumulating assets whenever the price corrects. For Avalanche, the MFI is currently approaching the peak zone, reflecting sustainable demand.

The Money Flow Index (MFI) of AVAX | Source: TradingViewWhen combining CMF and MFI, the picture becomes clearer: capital flow is not only strongly flowing into Avalanche but is also maintaining stability. Investors are willing to participate even during short-term corrections, creating a solid foundation for the bullish trend.

Avalanche Price Outlook: Target 45 USD

Technically, Avalanche (AVAX) has broken above the important resistance level around 28 USD – a milestone that, when conquered, often reverses to become a support area. Currently, the level of 27.5 USD is considered the first "shield" protecting the uptrend.

AVAX/USDT Daily Chart | Source: TradingViewBased on Fibonacci levels – a popular tool for predicting targets after each upward movement – the next price levels that AVAX may aim for are 32 USD, 38 USD, and further at 45 USD. These are all key areas that traders need to pay special attention to.

If it reaches the peak of 45 USD, Avalanche will record an increase of nearly 60% compared to the current price, making this milestone a highly anticipated target for many investors.

SN_Nour

AVAX0.45%
ETH2.52%
SOL7.36%
XLM2.39%
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