AVAX Volume Spike & MENA Expansion Fuel Upside

AVAX Volume Spike & MENA Expansion Fuel Upside

Wed, December 24, 2025

Introduction

This week brought several concrete developments for Avalanche (AVAX) that directly affected trading activity and investor sentiment. A pronounced spike in decentralized exchange (DEX) volume coincided with price action near long‑term support, while Avalanche’s institutional outreach in the Middle East gained public visibility. These are tangible events traders can use to assess potential price trajectories rather than speculative narratives.

On‑Chain Volume & Price Behavior

DEX volume surge and trading implications

AVAX’s DEX ecosystem recorded a notable surge in trading volume, with intra‑day totals topping roughly $1.8 billion. Large, sustained volume spikes like this inject liquidity and can precede decisive price moves because they signal active participation from traders and liquidity providers. In practical terms, the extra flow makes it easier for buyers or sellers to move positions without excessive slippage.

Price levels and technical structure

Price clustered around the low‑teens (near $13–$15) and has been trading inside a descending formation often interpreted as a falling wedge. A falling wedge that forms while volume increases — as we saw this week — historically carries a higher probability of a bullish resolution. Analysts watching the setup noted near‑term resistance in the mid‑teens, with incremental upside targets in the low‑to‑mid‑$20s and broader breakout targets stretching higher if momentum confirms.

Network Fundamentals: Usage and Liquidity

TVL, users and transaction throughput

Beyond price and volume, Avalanche’s core metrics remained robust. Total value locked (TVL) hovered around $1.8 billion, and weekly active users were reported near 159,000. Daily transaction counts showed meaningful activity — around 2.5 million transactions on average and a peak day that processed tens of millions. Those figures reflect concrete application-level usage across DeFi, gaming and enterprise workloads, which underpins on‑chain demand for AVAX over time.

Protocol revenue and economic signals

Protocol‑level revenue over the prior 30‑day window came in near $440,000. While not headline‑dominating, steady protocol revenue demonstrates actual fee capture and economic activity on the chain. For traders, rising or steady protocol revenue combined with higher DEX volume reduces the likelihood of purely speculative price action and supports a narrative of utility‑driven demand.

Institutional & Regional Developments

MENA expansion via ADGM

Avalanche’s team showcased a stronger institutional presence in the Middle East this week, notably in Abu Dhabi. The project announced initiatives with Abu Dhabi Global Market (ADGM) to establish a distributed ledger technology (DLT) foundation and expanded engagement around regulation, enterprise pilots and infrastructure support. These are tangible steps toward regulated institutional integration, which can gradually increase demand from custodial and institutional flows.

Why the region matters for AVAX demand

Institutional adoption in a regulated jurisdiction like ADGM can unlock new counterparties, custodians and compliant applications. Compared with purely retail‑driven rallies, institutional flows are typically larger and stickier, potentially translating to sustained volume and more stable liquidity for AVAX over time.

Conclusion

This week’s developments for Avalanche are concrete and measurable: a DEX volume surge (~$1.8B), resilient TVL (~$1.8B), healthy user and transaction metrics, plus formal outreach within ADGM. Together these signals create a clearer framework for assessing AVAX price action. Traders should watch whether elevated volume persists and whether the descending wedge resolves with conviction—these factors will materially influence the next directional move for AVAX.