๐Ÿ’ธ “Snowblind”: Avalanche’s Stablecoin Surge Fails to Melt AVAX Blues

by

As I wandered through the desolate landscape of cryptocurrency, I chanced upon a most peculiar sight: Avalanche, a network once full of promise, now found itself in a predicament of plenty. Its stablecoin supply had swelled by a whopping 70% over the past year, from a modest $1.5 billion in March 2024 to a staggering $2.5 billion as of March 31, 2025, according to Avalanche’s X pos. ๐Ÿ“ˆ

One would think that such an influx of stablecoins would be a harbinger of good fortune, a beacon shining bright to guide investors to the promised land of profit. Alas, dear reader, the reality is far more…amusing. ๐Ÿ™ƒ For despite this deluge of digital doubloons, Avalanche’s utility token, AVAX, has been mired in a downtrend, its value plummeting nearly 60% over the past year to hover above $19, like a lost soul wandering the crypto wilderness. ๐Ÿ˜”

Juan Pellicer, a sage analyst from IntoTheBlock, offered a poignant insight into this paradox: “The substantial portion of these inflows consists of bridged Tether (USDT), which seems to be inactive treasury holdings rather than capital actively deployed within Avalanche’s DeFi ecosystem…at least for the time being.” In other words, all that glitters is not gold, but rather a pile of idle stablecoins, gathering digital dust. ๐Ÿ’ธ

โ€œThis seems as inactive treasury holdings rather than capital actively deployed within Avalanche’s DeFi ecosystem (at least for the time being). If these stablecoins aren’t being used in lending, swapping, or other DeFi activities that would typically drive demand for AVAX (for gas, collateral, etc.), their presence alone wouldn’t necessarily boost the AVAX priceโ€

And so, dear reader, AVAX’s woes continue, entwined with the broader crypto market’s malaise, as the world holds its breath in anticipation of US President Donald Trump’s tariff announcement on April 2 โ€“ a specter of uncertainty looming over the global economy like a dark cloud. ๐ŸŒซ๏ธ

70% Chance of Crypto Market Bottoming Out by June: Nansen Analysts’ Bold Prediction ๐Ÿค”

Aurelie Barthere, a prescient analyst from Nansen, opined, “Once the toughest part of the negotiation is behind us, we see a cleaner opportunity for crypto and risk assets to finally mark a bottom.” Ah, the eternal optimism of the crypto enthusiast! ๐ŸŒˆ

As traditional and cryptocurrency markets stumble about, lacking the momentum of a sleepy sloth, Nansen’s research report of April 1 succinctly summed up the situation: “For the main US equity indexes and for BTC, the respective price charts failed to resurface above their 200-day moving averages significantly, while lower-lookback price moving averages are falling.” In short, a big yawn from the markets. ๐Ÿ˜ด

Read More

2025-04-02 16:09