AVAX Soars to 3-Month High Amid Explosive Network and DeFi Growth Surge

AVAX rockets past resistance levels as ecosystem activity hits fever pitch—proving once again that in crypto, actual utility still occasionally beats hype.

Network metrics scream bullish

Transaction volumes blast through previous ceilings while DeFi protocols on Avalanche attract fresh capital like moths to a speculative flame. Validator participation climbs—staking rewards looking juicier than traditional savings accounts that haven't beaten inflation since the 1980s.

DeFi ecosystem expands aggressively

New protocols launch, old ones scale, and liquidity pools deepen—creating a virtuous cycle that even Wall Street veterans grudgingly acknowledge. Yield farmers swarm in, chasing returns that make bond markets look comatose.

Market momentum builds unstoppable force

Traders pile into positions, options activity spikes, and social sentiment hits euphoric levels—because nothing fuels a crypto rally like the fear of missing out on the next pump. Shorts get squeezed, leverage flips bullish, and AVAX reminds everyone why altseason separates the diamond hands from the tourists.

Another reminder that while traditional finance debates rate cuts, crypto builds the damn future—one blockchain transaction at a time.

AVAX rallies on rapid USDC inflows

USDC on AVAX is the most rapidly expanding stablecoin version, based on Token Terminal data. For the past month, the chain expanded its supply by 65.9%, for a total of over $1.2B in USDC. 

In total, Avalanche carries over $2.4B in various stablecoins, with a total value locked of $2.26B. 

One of the chief drivers of expansion is the chain’s version of Aave, which grew its value locked by over 33% in the past month.  Recently, Aave C-Chain also entered the top 5 of networks with the biggest inflows, with a net $6.3M added in the past 24 hours. C-Chain was surpassed by BNB Smart Chain, just behind ethereum and Solana. 

For the past three months, over $30M net flowed into Avalanche C-Chain, with most of the funds originating on Ethereum.

Ethereum is the biggest source of inflows into Avalanche C-Chain. | Source: Artemis

While AVAX sees outflows for other stablecoins, USDC is growing in dominance, with around 50% of the chain’s total stablecoin supply. 

Avalanche achieves the highest APY on Aave

Avalanche C-Chain is being chosen by users for its higher yield opportunities. The chain’s AAVE protocol offers up to 5.22% APY on USDC, comparably higher than chains like Arbitrum. 

Aave protocol uses the same approach but still has different yields on various chains. Avalanche has achieved the highest yield, which is becoming the main attractor for USDC usage. 

On Avalanche, EURC tokens on Aave can earn up to 9% yield, while USDC earns 5.22%. EURC recently reached up to 17.9% in yield, showing a potential niche market with higher volatility. USDC deposits are relatively stable, based on the offered current APY.

The stablecoin arbitrage conditions may change, but for now, Avalanche is getting a boost from demand for passive yield. The yield anomalies are putting Avalanche on the radar, as its DeFi space recovered in 2025. 

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