AVAX Fees Spike as Retail Investors Bail—Who’s Left Holding the Bag?

Avalanche’s native token AVAX is riding high—but not everyone’s enjoying the ride. Blockchain fees are surging, yet retail traders are slipping out the back door. What gives?

Gas guzzler: Network activity pumps fees, but small players vanish. Institutional whales? Still circling.

The irony? A ’decentralized’ ecosystem where the little guys get priced out first. Just another day in crypto’s casino economy—where the house always wins, even when it’s not technically a house.

What’s behind AVAX’s recent trend?

According to a report by Nansen, AVAX finds itself in a paradoxical market position caused by the contrasting actions of whales and retail traders.

The analysis cites a recent 74% drop in Active Addresses—down to 414,234—and a 34% decline in transactions to 2,990,667, confirming waning retail interest.

Source: Nansen

Interestingly, transaction fees surged, with analysis suggesting that whales—likely institutions—are behind the spike.

The fees generated on the blockchain over the last seven days have jumped 116%, reaching $243,280, a significant portion of which is attributed to these institutions.

Whale activity generally supports a market rally, as it signals growing confidence. AMBCrypto tracked the market impact of this trend.

What does whale presence mean?

That shift was further confirmed in spot markets.

In just 24 hours, whale wallets snapped up $10.62 million worth of AVAX, just shy of the year’s highest single-day accumulation of $10.63 million on the 6th of April.

Source: CoinGlass

This week alone, traders have bought $22.96 million worth of AVAX, indicating that buyers on centralized exchanges view the current price as a significant discount.

Source: Artemis

Across decentralized exchanges (DEXes), AVAX trading activity is also rising. Currently, DEX volume has reached $161 million.

If this upward trajectory continues, the asset could reclaim its market high above $200 million, potentially strengthening its price.

How has AVAX reacted?

AVAX’s presence on the chart remains strong, but it may face significant resistance at $26.47.

If this resistance holds, AVAX could return to the ascending triangle pattern, marked by the purple line, and continue trading within this range.

However, a successful breakout above this level could send the asset from $26.47 to $41.90—a 58% gain.

Source: TradingView

This outlook hinges on two factors: if whale buying continues and spot markets keep absorbing the asset, AVAX could reach the upper target.

But if retail investors continue to lose interest, it may affect price movement and increase the likelihood of a return to the earlier trading pattern.