Avalanche faces two forces this week: a significant increase in on-chain usage and the upcoming unlocking of approximately $23.3 million worth of AVAX. The market's focus is on whether this new circulating supply will interrupt the current weak price recovery.
As of press time, AVAX was trading at $6.58, up 2.1% in the last 24 hours. However, compared to on-chain data, the token price performance remains weak, and this divergence has become one of the key points for market observation of Avalanche recently.
Daily transaction volume rose to 6.2 million within a year.
Over the past year, Avalanche's transaction volume has seen significant growth. Data shows that the average daily transaction volume was approximately 300,000 in the second quarter of 2025, rising to 6.2 million in July 2026. Although it has since declined somewhat, it currently remains at approximately 2.62 million transactions, significantly higher than the level a year ago.
Increased on-chain activity has also led to token burning. Recently, approximately 135.65 AVAX tokens were removed from circulation through the fee burning mechanism, indicating that the network maintained a certain level of usage even during price consolidation.
At the same time, the balance of stablecoins within the Avalanche ecosystem has also increased significantly in recent months, once exceeding $2 billion, reflecting more funds flowing into its decentralized applications and on-chain services.
FIFA partnership brings new exposure
On the application side, Avalanche has also secured a new major partnership. FIFA has selected Avalanche as the blockchain infrastructure for its dedicated Layer 1 network to support FIFA Collect. This partnership allows Avalanche to access digital collection scenarios for football fans worldwide.
The article mentions that the 2026 World Cup has just concluded, and the event itself has increased the exposure of blockchain digital collectibles and fan interaction products. For Avalanche, this type of collaboration is more focused on medium- to long-term adoption progress than on short-term price catalysts.
July 21st unlocks short-term focus
The market is currently more focused on the token unlock on July 21st, at which time approximately $23.3 million worth of AVAX will enter circulation. According to the article's data, this represents about 0.7% of the current tradable supply.
Although the percentage is small, token unlocking is often amplified by the market because if holders choose to cash out, short-term selling pressure may increase. For AVAX, changes in trading volume will be one of the direct indicators for observing the impact of unlocking.
From a price perspective, the current resistance level is around $6.62, corresponding to the 38.2% Fibonacci retracement level. If the price breaks above this level, the market may continue to focus on the $6.80 area. On the downside, the main support level is $6.32; if this level is breached, the price may retest the previous low near $5.85.
