Avalanche Eyes Bitcoin’s Coattails: Can It Shatter ATHs in Q2 After This Power Play?

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2025-05-22 10:16:02

Crypto’s perennial underdog just made a move that’s got traders buzzing—can AVAX ride BTC’s momentum to new highs?

The setup: Bitcoin’s latest bull run has altcoins frothing. Now Avalanche—long overshadowed by Ethereum and Solana—is flashing signals it might finally get its moment.

Watch the indicators: Network upgrades, institutional interest (or as we call it in crypto, ’whales with money’), and that sweet, sweet correlation with BTC’s price action.

The cynical take: Of course this happens right after retail investors finally gave up on ’Ethereum killers.’ Classic market psychology—just ask anyone who bought the last top.

Avalanche can be the breakout token in 2025. VanEck is launching Purposebuilt moments after the Fusion initiative announcement

If bulls press on, it WOULD not be surprising for AVAX crypto to triple, surging past its 2021 highs of around $150.

VanEck Launches Purposebuilt on Avalanche

Yesterday, Avalanche unveiled that VanEck, an asset manager, will launch a fund called Purposebuilt on its network.

This deal could propel AVAX beyond its 2024 highs to over $150, possibly opening up investment into some of the best meme coin ICOs.

Purposebuilt is a dedicated investment fund targeting real-world applications built on Avalanche.

VanEck supporting Avalanche dapps is not a simple endorsement, considering that the fund manager has over $116 billion in assets under management.

Moreover, it has a solid reputation for identifying market opportunities early and is already an issuer of spot bitcoin ETFs in the United States.

The team behind the Digital Asset Alpha Fund (DAAF) will manage the fund. DAAF, launched in 2022, has $100 million in assets under management and focuses on investing in liquid tokens tied to “scalable products, economic alignment, and real adoption.”

“The next wave of value in crypto will come from real businesses, not more infrastructure,” said Pranav Kanade, Portfolio Manager of VanEck Digital Assets Alpha Fund. “Avalanche has become a magnet for thoughtful builders, and with the VanEck PurposeBuilt Fund, we’re bringing capital and conviction to the founders creating lasting value, not chasing momentum.”

What’s sparking investor interest is Purposebuilt’s strategy.

Notably, it will adopt a fundamentals-first approach, investing in breakout projects around or after their token issuance.

The fund will balance liquid token exposure with venture-stage opportunities while actively deploying idle capital into real-world asset (RWA) solutions, particularly those in money market funds.

Fusion to Avail $100 Million for Innovation

Interestingly, VanEck is launching the fund just as Avalanche, in partnership with Helix, announced the Fusion initiative.

The $100 million community-backed effort aims to scale products addressing real-world problems through a two-layer system of composers and modules.

Fusion is supported by Avalanche and its programs, including Multiverse and InfraBUILD.

It will serve as a launchpad for developers, focusing on AI, healthcare, and real-world asset tokenization solutions. They will use custom blockchains via composers and plug-and-play tools available through modules.

“Fusion equips developers with the tools they need to build impactful, real-world applications,” said Nicholas Mussallem, CEO of AvaCloud. “It enhances networks once they’re operational, driving widespread adoption across industries.”

Back to DeFi?

Last week, developers integrated BlackRock’s BUIDL into Avalanche via Euler Finance.

BUIDL is already available on multiple chains, including ethereum and Polygon, and has tokenized over $3 billion in U.S. treasuries and repo agreements.

The integration introduced sBUIDL, a composable version of BUIDL. The token can be used as collateral to borrow stablecoins and earn rewards, including AVAX.

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