Avalanche DEX trading volume rebounded in September 2025 to a three-year peak of 17.4 – 31 billion dollars, a jump that analysts say feeds recovery hopes for the network. The surge touches DeFi users, liquidity suppliers and institutional funds, signaling heavier on-chain activity. The rise also prompts questions about how long it will last and whether it will move the token price.
September’s climb paired with more daily transactions and a higher TVL, pointing to wider use of Avalanche DeFi protocols.
Drivers listed are lower fees and faster settlement than Ethereum, alongside a broad set of yield offers and institutional backing that includes treasury purchases above one billion dollars and Hivemind Capital’s 550 million dollar AVAX One fund.
The same report notes that the record volume has not lifted AVAX’s price; activity and appreciation remain out of step, hinting at a gap between on-chain data and market mood.
The gap between activity and price
The surge may deepen adoption and liquidity for protocols on Avalanche and may draw new projects plus institutional capital, expanding the network’s reach if momentum holds.
The source of the volume matters — organic flow or wash trading, and rival Layer-1 and Layer-2 chains could erode the gain if incentives or performance shift elsewhere.
The split between volume and price suggests outside market forces or early investor sales may block value from reaching the token. The article also asks how Avalanche will keep security and scale under heavier load and whether product upgrades and institutional deals will turn growth into steady demand for AVAX.
The next test is whether September’s volume repeats and whether activity lifts AVAX’s price for good; this will show whether the rise was a single spike or the start of a structural recovery.
