Avalanche Stablecoins Up 70% to $ 2.5B, AVAX DEMAND is lacking in Defi Deployment

Avalanche saw a significant advances in the Stablecoin supply over the last year, but the onchain deployment of these capital points in the investor’s behavior, which could limit demand for the network utility token.

Stablecoin’s supply to the Avalanche Network rose more than 70% in the last year, from $ 1.5 billion in March 2024, to more than $ 2.5 billion to March 31, 2025, according to Avalanche’s X Pos

Stablecoins is the main bridge between the Fiat and Crypto world and Increased stablecoin supply is often seen as a signal for incoming pressure purchase and growing appetite for investors.

However, the avalanche (Avax) The token is in a downtrend, which drops nearly 60% in the past year to trade above $ 19 to 12:31 PM UTC, despite a $ 1 billion increase in Stablecoin’s supply, Cointelegraph Markets Pro Data displays.

“The apparent contradiction between surging stablecoin value in the avalanche and the significant decrease in AVAX prices are likely to come from how stablecoin liquidity is held,” said Juan Pellicer, Senior Research Analyst on the Intotheblock Crypto Intelligence Platform.

Related: Bitcoin could hit $ 250k in 2025 if Fed switched to QE: Arthur Hayes

A “large portion” of these flows consists of bridged tether (USDT), said the research analyst on cointelegraph, adding:

“This seems to be as inactive treasury handling rather than the capital that is actively -deployed within the Avalanche’s defi ecosystem (at least this time). If these stablecoins are not used in lending, replacing, or other defi activities that usually drive demand for AVAX (for gas, collateral, etc.) Avax’s price is not required to boost “

Avax token downtrend comes during a greater correction in the crypto market, because investor’s feelings are forced by global absence Reciprocal import tariff Announced on April 2, a proposal aimed at reducing the country’s estimated trade shortage of $ 1.2 trillion.

Related: Michael Saylor’s approach buys a $ 1.9B purchase

70% opportunity for Crypto Market to the bottom of June: Nansen Analysts

Nansen’s analysts predict a 70% chance that the Bottage the crypto market In the next two months leading to June as the continued development-related development and investor concerns are eased.

“When the hardest part of the negotiations is behind us, we see a cleaner opportunity for cryptos and risks of risk to finally mark a bottom,” Aurelie Barthere, chief research analyst of Nansen Crypto Intelligence Platform, told the cointelegraph.

Both traditional and cryptocurrency markets continue to lack the reversal momentum ahead of the US tariff announcement.

“For major US equity indexes and for BTC, their respective price charts failed to revive above their 200-day transition averages, while average moves are falling,” Nansen wrote in an April 1 research Report.

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Magazine: The bitcoin ath earlier than expected? XRP can drop 40%, and more: Hodler’s Digest, March 23 – 29