Tornado Cash fallout deepens: Dragonfly warns of ‘chilling effect’ on U.S. crypto
- AVAX surged 16%, leading top-10 ecosystems with rising DeFi TVL and renewed market momentum
- TVL rebound and bullish sentiment could drive AVAX toward $30, but key resistance remains ahead
Avalanche [AVAX] is back in motion, posting a sharp 16% gain over the past week to become the fastest-growing top-10 ecosystem this month.
Source: CoinMarketCap
The move comes despite a continued slide in Total Value Locked (TVL), which has fallen from over $1.5 billion to around $1.1 billion since the start of 2025. Still, the latest price action suggests a shift in sentiment, with investors betting on a potential breakout.
Avalanche leads top-10 ecosystems
Source: X
Avalanche has outpaced its layer-1 and layer-2 counterparts, achieving a 14.4% increase in DeFi TVL over the past month—the highest growth among the top 10 ecosystems.
While Ethereum [ETH], Arbitrum [ARB], and Base experienced monthly declines and Solana [SOL] and BSC saw modest gains, Avalanche displayed a distinct upward trend. Its DeFi TVL now stands at $1.63 billion, supported by over 430 protocols.
Despite overall market volatility, this growth reflects heightened developer activity and renewed user interest in the network, positioning Avalanche as a standout performer in early Q2 2025.
TVL rebounds after three-month decline
Avalanche’s TVL showed a notable rebound in April, climbing back above $1.2 billion after a persistent downtrend since early January.
The chart reflects a clear dip from over $1.5 billion at the start of 2025 to sub-$1.1 billion by late March, mirroring broader risk-off sentiment in crypto markets.
Source: DeFiLlama
However, the recent uptick suggests a shift in momentum — likely driven by rising AVAX prices, user incentives, and protocol reactivations.
While still below Q4 2024 levels, this bounce marks the first sign of sustained recovery and could signal a turning point.
AVAX eyes $30, but resistance looms
At press time, AVAX was trading around $20, recovering from March lows near $16.
Technically, the $30 level remains a key psychological and structural resistance – last tested in early February 2025 and again during multiple rejections in mid-2024.
Source: TradingView
The chart indicates that AVAX is breaking out of its short-term downtrend. However, for a decisive move toward the $30 mark, bulls must clear the resistance zone between $24 and $26.
If momentum holds and AVAX firmly reclaims the $26 level, a push toward $30 becomes achievable. That said, a period of short-term consolidation is likely before any potential breakout occurs.
