AVAX price achieved some gains in May but it concluded the month within the same level as its monthly opening price. But will June bring different tidings for the cryptocurrency especially with the recent growth in network activity?
Avalanche’s latest network activity may offer hints into AVAX price action in June. The latest address data revealed that it had about 2.2 million active addresses, which represented a 400% gain since early May.
Source: X
Avalanche attributed the surging network activity to multiple factors, among them including a social Fi protocol called The Arena app. The network also acknowledged growing liquidity within its ecosystem as another main reason supporting the growth.
On a related note, Avalanche stablecoin marketcap grew from as low as $1.61 billion on 9 April to $2.07 billion as of 5 June.
However, that growth did not reflect on Avalanche DEX volume which dropped from $260.67 million at its May peak to $91.6 million in the last 24 hours at the time of observation.
Avalanche Transactions Kicks off Strong in June’s First Week
Avalanche transaction activity has been on the rise in the last 4 weeks. For context, it rallied above 1.21 million transactions on 2 June which marked its highest peak in the last 12 months.
Avalanche address activity/ Source: DeFiLlama
The last time transactions were that high was towards the end of February 2024. Avalanche transactions previously demonstrated growth in May, during which daily transactions crossed over 500 TXs on multiple days.
Avalanche daily transactions previously struggled to cross above 500 million transactions between May of 2024 and April 2025.
The rising transaction count was a welcome observation signifying positive network growth. This is important because healthy network growth traditionally signals growing demand for the native coin, an outcome that has the potential to boost investor confidence. However, AVAX price action in the last 3 weeks was not a reflection of that growth.
AVAX Price Struggles to Find Bullish Footing
AVAX price action exchanged hands at $20 at press time after sliding by about 7% from its weekly high and about 25% from its peak in May. Price has been approaching its 4-week bottom range signaling weak demand.
AVAX price action: Source: TradingView
AVAX previously dipped as low as $19.09 in May, before bouncing back. The latest wave of sell pressure signaled that it could potentially retest the same support during the weekend if it maintained the same bearish momentum.
Note that AVAX was still not close to being oversold despite the latest downside, which suggests that there was room to slide lower. This was also backed by the observation that spot flows remained in the red.
source: Coinglass
AVAX spot flows were in the red for the last 14 consecutive days. It has so far experienced about $17.8 million worth of negative spot flows since the start of June.
Meanwhile, AVAX open interest slid from $521.8 million on 31 May to $484.6 million as of 5 June. Long liquidations amounted to $1.13 million while shorts amounted to just over $23,000. A sign that bullish expectations remained prevalent despite the opposite outcome.
Can AVAX take advantage of the growing address activity? The fact that price did not react positively to the growing network activity may indicating that the rising addresses were not contributing to AVAX demand.
But now that AVAX has already been significantly discounted, the cryptocurrency’s possibility of a recovery was significantly elevated. Especially with rising network activity which could potentially influence investor sentiment.
Speaking of, AVAX remained in neutral sentiment for the last 4 weeks. For context, it hovered at the 52 range last week but it has since dropped to 46 at the time of observation.
Further sentiment erosion may see AVAX slide into fear, which means it may slide to the next major support zone near $15.
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