A newly released report from crypto market intelligence firm Messari offers a 
detailed look at Avalanche’s (AVAX) performance during the fourth quarter (Q4) 
of 2025, revealing a sharp contrast between weak price action and 
record‑breaking on‑chain activity. Metrics Climb Even As AVAX Suffers Steep Q4 
Decline According to Messari, Avalanche’s native token, AVAX, experienced a 
steep decline during the final quarter of the year. The token fell 59.0% 
quarter‑over‑quarter (QoQ) and 65.5% year‑over‑year (YoY), dropping from 
around $30.00 at the end of Q3 in September to approximately $12.30 by the 
close of Q4. Related Reading: Bitcoin Slides Toward $85,000 Despite Progress 
On US Crypto Market Structure Bill Avalanche’s circulating market 
capitalization mirrored that drop, falling 58.3% QoQ and 63.9% YoY from $12.7 
billion to $5.3 billion. Yet, the decline in valuation also impacted 
Avalanche’s relative standing among digital assets. AVAX slipped from 14th to 
21st place in rankings by circulating market cap over the quarter. Despite 
this, Messari highlighted that network usage continued to expand, effectively 
breaking the typical link between token price performance and network fees. 
While total fees measured in US dollars declined 11.7% QoQ, that drop was 
modest compared with the 59.0% fall in AVAX’s price. In native terms, fees 
paid on the network increased meaningfully. Fees denominated in AVAX rose 
24.9% QoQ, climbing from 105,719 AVAX to 132,016 AVAX. Average daily 
transactions on the C‑Chain jumped 63% to 2.1 million, while a wave of 
liquidations during the market crash on October 10, 2025, generated $520,715 
in transaction fees. Messari noted that this was the highest single‑day fee 
total recorded on Avalanche since February 2024. Avalanche Sees Record 
Transaction And User Activity Looking more broadly, Avalanche’s ecosystem 
reached new activity highs in Q4 2025. Aggregate usage across the C‑Chain and 
all Avalanche Layer‑1 networks accelerated sharply. Average daily transactions 
increased 4.5% QoQ and surged 1,162.1% YoY to 38.2 million. At the same time, 
average daily active addresses climbed 25.1% QoQ and an extraordinary 
16,360.3% YoY, reaching 24.7 million. Activity on the C‑Chain alone reached 
historic levels. Average daily transactions rose 69.0% QoQ and 799.3% YoY, 
making Q4 2025 the busiest quarter on record for the chain. Staking metrics, 
however, reflected the pressure from falling prices. The total USD value of 
staked AVAX declined 59.9% QoQ and 69.1% YoY to $2.3 billion, largely tracking 
the token’s price drop. Rising DeFi Base And Major RWA Growth Avalanche’s 
decentralized finance ecosystem also continued to evolve despite market 
headwinds. Messari reported that the DeFi Diversity Score, which measures how 
many protocols account for 90% of total value locked, rose 5.9% QoQ and 63.6% 
YoY, increasing from 17.0 to 18.0. Related Reading: Bitcoin Supply In Loss 
Begins To Rise, Raising Early Bear Market Concerns Total DeFi TVL across 
Avalanche L1s and the C‑Chain declined 41.9% QoQ and 3.8% YoY, falling from 
$2.2 billion to $1.3 billion. At the same time, the network’s stablecoin 
market cap grew modestly, increasing 1.7% QoQ and 24.3% YoY to $1.8 billion. 
As seen in the chart above, measured in AVAX rather than dollars, native DeFi 
TVL rose 34.5% QoQ to 97.5 million AVAX, even as USD‑denominated TVL fell 
44.9%. Messari explained that this divergence occurred because AVAX’s price 
declined faster than the underlying value held within DeFi protocols. One of 
the strongest areas of growth for Avalanche in Q4 was real‑world assets 
(RWAs). RWA TVL jumped 68.6% QoQ and 949.3% YoY, rising from $789.8 million at 
the end of Q3 to $1.33 billion by the close of Q4 2025. Featured image from 
OpenArt, chart from TradingView.com

Avalanche (AVAX) Defies Bear Market With Explosive On‑Chain Growth, Messari

The U.S. government has secured ownership of more than $400 million tied to 
the Helix darknet crypto mixer, closing a long-running enforcement case 
targeting large-scale laundering of illicit bitcoin through hidden online 
markets. US Finalizes $400M Forfeiture in Helix Darknet Crypto Case A major 
federal enforcement action reached its final stage. The U.S. Attorney’s Office 
[…]

US Secures $400M in Assets Linked to Helix Crypto Case

Bitcoin’s sharp slide to $81,119 on January 30 came with a derivatives-market 
gut punch: forced long closures spiked to extreme levels, yet perpetual 
funding stayed decisively positive. That mix is complicating a common read, 
whether the market has already “cleansed” leverage or is still set up for 
repeat liquidation waves. Is The Bitcoin Deleveraging Over? On-Chain analyst 
Axel Adler Jr., in his Morning Brief, pointed to a “cascade of forced 
closures” over the past 24 hours, with long liquidations dominating the tape. 
His liquidation dominance oscillator tracking the balance of long versus short 
liquidations, printed roughly 97%, while the 30-day moving average rose to 
31.4%. In plain market-structure terms, that says deleveraging pressure has 
been heavily one-sided, not just on the day but as a sustained pattern through 
the last month. The reason traders watch extremes like this is the tendency 
for liquidation flows to cluster and then fade, creating room for near-term 
stabilization. Adler framed that dynamic cautiously, stressing that an 
“extreme” reading is not the same thing as confirmation that sellers are done. 
Related Reading: Bitcoin Is The Money Of The AI-Powered Economy: CryptoQuant 
CEO “Oscillator extremes often coincide with the culmination of forced selling 
and can lead to short-term stabilization. However, this is not a reversal 
signal without confirmations — for a sustainable ‘local bottom’ scenario, it 
is important to see at least normalization of the oscillator to zero or a 
decline in the 30-day average.” That sets the first condition for calling the 
deleveraging cycle “over”: the liquidation imbalance has to cool, rather than 
simply peak. The bigger tension in Adler’s read is that even after the washout 
in price and the liquidation cascade, funding remained positive: 43.2% 
annualized on the day, by his figures. While that’s well below the 100%+ 
annualized levels seen during October–November peaks, it still implies a 
market paying to stay long rather than getting paid to short. Funding doesn’t 
just reflect sentiment; it reflects positioning pressure. If funding refuses 
to flip despite a selloff, it can mean longs are rebuilding exposure quickly, 
or that the market never fully unwound bullish leverage in the first place. 
Adler’s conclusion is that the latter risk is still on the table. “Positive 
Funding amid massive liquidations increases the risk of repeated deleveraging: 
this means the market is recovering long positioning quickly enough or is not 
ready to fully unwind it. Complete ‘derivatives capitulation’ is often 
accompanied by Funding transitioning to neutral or negative territory — this 
has not happened yet.” Related Reading: Bitcoin Death Cross That Last Preceded 
A 66% Drop Is Back In other words, the liquidation event may have been 
violent, but the incentives embedded in perps are still leaning toward long 
demand. That matters because it keeps the same fragility in place: a fresh 
downside impulse can turn newly reloaded longs into liquidation fuel again. 
Adler summed up the combined signal from the two charts as a washout that may 
be intense, but not necessarily final. “Together, the two charts paint a 
picture of likely incomplete deleveraging: liquidations hit longs extremely 
hard, but overall positioning remains tilted bullish. The liquidation cascade 
(long dominance ~97%) is a symptom of market overload with long positions, but 
not necessarily final cleansing. Persistently positive Funding (43% 
annualized) may indicate that demand for long exposure is not broken, and the 
deleveraging process is not complete.” Until those confirmations show up, the 
base case in his briefing is less “final capitulation” and more “incomplete 
deleveraging”, a market that has already flushed leverage once, but may not be 
done if long appetite stays intact through drawdowns. At press time, BTC 
traded at $82,968. Featured image created with DALL.E, chart from 
TradingView.com

Bitcoin Deleveraging Finally Over? What The Derivatives Data Says

Tether CEO Paolo Ardoino said the “structure behind” the company’s growth 
mattered more than its “scale” in 2025, as US Treasury holdings surpassed $122 
billion.

Tether US treasury holdings reach record highs, profits fall 23% year-on-year

Ethereum is trading at a critical juncture as buyers continue to defend the 
$2,600 support zone, attempting to stabilize the price after recent 
volatility. While this level is keeping short-term downside in check, broader 
market pressure and weakening structure leave bears watching closely for a 
potential breakdown that could open the door to a deeper macro pullback. 
$2,600 Holds As Key Support On Ethereum 6H Chart On X, Can Özsüer highlighted 
that Ethereum is currently holding above the $2,600 support zone on the 6-hour 
chart, a level that has so far provided a solid base for price action. As long 
as ETH continues to defend this area and avoids a clear candle close below it, 
the broader structure remains constructive for a potential upside attempt. 
Related Reading: Ethereum Stalls In A Critical Zone As Breakout Structures 
Wait For Confirmation With support intact, the analyst pointed to a recovery 
toward $3,050, followed by a possible move into the $3,150 region. These zones 
are seen as logical reaction levels where price may either consolidate or face 
temporary resistance if buying momentum gradually strengthens. However, for 
Ethereum to unlock a more meaningful bullish continuation, Özsüer stated it 
must reclaim $3,350, referred to as box number two on the chart. A decisive 
close above this level, backed by strong volume, would open the door for 
higher price exploration. If ETH fails to break through that resistance, it 
could cap price and trigger another wave of selling. In that case, a deeper 
pullback toward the $2,400–$2,100 support range becomes a real possibility. 
Özsüer also shared that he has already taken a long position based on the 
$2,600 support on the 1-hour chart and is monitoring price closely, with plans 
to add to the position depending on how momentum develops. Loss Of $2,710 
Targets The $2,620 Swing Low According to crypto analyst Ardi, Ethereum is 
currently sitting in a make-or-break area, with $2,710 standing out as a 
crucial short-term support level. A clean loss of this zone would likely 
accelerate downside pressure, placing the $2,620 swing low firmly in focus as 
the next area where liquidity could be tested. Related Reading: Ethereum Chart 
Turns Bullish: New Cycle Energy Points To $5,000 Ardi emphasized that the 
$2,450 region serves as the primary line of defense for the broader market 
structure. Holding this level would be essential to prevent a deeper 
structural breakdown, as a sustained move below it could push Ethereum into a 
far more vulnerable technical position. Compounding the downside risk, ETH/BTC 
remains in a strong downtrend, highlighting Ethereum’s ongoing 
underperformance relative to Bitcoin. This relative weakness suggests that 
volatility could stay elevated in the coming sessions, making the environment 
increasingly unstable for ETH holders. Featured image from Pexels, chart from 
Tradingview.com

Cryptocurrency price in CLP