Altcoins News

Story: AVAX Market Cap Drops, But Avalanche Usage Reaches All-Time High in Q1 2025

By Maheen Hernandez

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Avalanche Market Cap Fell Nearly 47%. Avalanche had a tough start to 2025 in terms of price performance.

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Network Upgrade Lowered Fees, Boosted Activity. The drop in fees was partly because of the Avalanche9000 upgrade, which cut base transaction fees…

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Pulsar Game hint Massive Transaction Growth. The real highlight of the quarter was the spike in user activity across Avalanche’s Layer-1 (L1)…

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Mixed Results for DeFi and Stablecoins. Avalanche's DeFi (decentralized finance) sector showed both strengths and weaknesses.

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Final Thought. Although AVAX’s price and market cap dropped significantly in Q1 2025, the Avalanche network…

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Despite losing nearly half of its market value in early 2025, Avalanche (AVAX) showed major growth in how often people are actually using it.

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Avalanche had a tough start to 2025 in terms of price performance. The circulating market cap of AVAX fell by 46.7% quarter-over-quarter, dropping to $7.8 billion.

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This decline was mainly due to the falling price of AVAX tokens, which also lowered the amount of fees collected in U.S. dollars. Dollar-denominated fees dropped by 62.

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While AVAX’s inflation rate stayed stable at 3.9%, there was a small rise in staking. 46.5% of AVAX’s eligible supply was staked at the end of Q1, up slightly from 45.

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Across all L1 networks on Avalanche, daily average transactions grew 21.3%, reaching 3.4 million.

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The Avalanche C-Chain also saw gains, with a 50.4% jump in transactions and a 258.5% increase in token activity.

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Avalanche's DeFi (decentralized finance) sector showed both strengths and weaknesses. In dollar terms, the total value locked (TVL) dropped 14.7%, falling to $1.1 billion.

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Among DeFi apps, Aave led the pack, growing to $515.2 million in TVL. But others like Benqi and LFJ saw declines of 25% and 30%, respectively.

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On the decentralized exchange (DEX) front, trading activity also dipped. Daily trading volumes dropped 17.

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Stablecoins on Avalanche also saw some shifting trends. Overall supply fell from $2.3 billion to $1.9 billion. Tether (USDT) supply dropped sharply by 34.

The Currency Analytics

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