Avalanche's Price Surges 35% as TVL Rebounds 15%

Avalanche (AVAX) has shown remarkable performance in the past week, with its price surging over 35% to reach approximately $20. This bullish momentum is closely tied to the protocol’s total value locked (TVL), which has rebounded in April after a three-month decline. The TVL, which measures the total value of assets locked in the protocol’s smart contracts, is a critical indicator of the platform’s health and user engagement.

The TVL for Avalanche had been on a downward trend since early January, dropping below $900 million in February and hovering around $1.1 billion by the end of March. This represented a significant decline from the peak of over $1.5 billion in January. However, the recent recovery in TVL suggests a potential turning point for AVAX prices, as TVL recoveries often signal the start of sustained rallies.

Avalanche’s DeFi TVL increased by approximately 15% in the previous month, outpacing its competitors. This growth highlights renewed investor interest and increased developer activity within the AVAX ecosystem. Token Terminal data indicates that AVAX’s active addresses have increased by over 15%, further supporting this trend. Various DeFi projects within the Avalanche ecosystem, such as Benqi and Trader Joe, have also seen surged capital inflows and amplified user engagements, indicating a revitalization of the blockchain’s use cases and appeal to users and developers.

Technical analysis reveals that the $30 mark is a crucial psychological level and resistance for AVAX. The altcoin witnessed multiple rejections at this zone in mid-2024 and last tested the level in February 2025. For AVAX to achieve a 50% surge from its current price to $30, it must overcome the $24 resistance and ensure a candle closing above $26. A decisive move past $30 would shift Avalanche’s trajectory to bullishness and catalyze extended rallies. However, continued buyer interest and broad-based market sentiments remain essential for AVAX’s recovery. The crypto sector displays indecisiveness, as Bitcoin appears stuck at $80K. To shift the market’s direction to the upside, the top crypto should overcome the $90 resistance and target $100K.