Forget price booms; Avalanche’s stablecoin stash ballooned over 70% in a year, hitting $2.5 billion by March’s end in 2025, up from $1.5 billion in March 2024.
Counterintuitively, this influx hasn’t boosted its native token, AVAX, which instead slumped 60% during the same period, according to Cointelegraph Markets Pro data.
Juan Pellicer, a senior analyst at IntoTheBlock, pinpointed where the magic vanished: “a substantial portion of the stablecoin inflows consists of Bridged Tether (USDT),” languishing as passive reserves rather than fueling DeFi activity.
These sidelined stablecoins are essentially starving AVAX of demand, a token typically used for gas fees, collateral, and various decentralized finance maneuvers.
Broader market headwinds aren’t helping either. Nansen analysts foresee a 70% likelihood of a crypto market bottom within two months, targeting June, but this hinges on the smooth progression of pending tariff negotiations amidst global economic jitters sparked by potential import tariffs from former US President Trump.