Key Takeaways
Avalanche Foundation aims to raise $1 billion for crypto treasury Companies. AVAX surged 10.93% to a 9-month high of $29.5 before retracing to $28.69 at press time.
Avalanche [AVAX] continued with its week-long price discovery and completed a breakout. In fact, the altcoin surged 10.93% to a 9-month high of $29.5 before retracing to $28.69 at press time.
During the same period, trading volume jumped 109% to $1.94 billion, indicating substantial capital influx and growing on-chain activity.
But what really inspired this price uptick?
Avalanche to raise $1 billion
In 2025, the crypto market has recorded massive capital inflow from corporate investors through treasury companies.
In fact, fundraising firms aiming to stockpile various crypto assets have raised a total of $16 billion over the past eight months.
Amid this rising demand for crypto treasury companies, the Avalanche Foundation has entered the conversation, aiming to capitalize on the market craze.
According to the Financial Times, Avalanche Foundation is in advanced talks with investors to launch a digital asset treasury company.
Through the said company, the foundation aims to raise about $1 billion for crypto treasury companies, and the money raised will be spent to buy Avalanche’s native token AVAX.
Under these arrangements, AVAX will be available at a discounted price to incentivize more investors.
As per the reports, the first deal will raise $500 million through private investment led by Hivemind Capital. The first phase of the agreement is expected to be finalised at the end of September.
However, Avalanche Foundation is yet to confirm the plans, with only Hivemind validating the reports.
Speculators jump into the market
Interestingly, following the recent news, Avalanche recorded significant speculative interest. As such, the altcoin’s Perpetual Volume surged to $23.6 million, levels last witnessed in July.
Source: DefiLlama
Typically, when Perps Volume rises, it implies that investors are actively betting on short-term price movement. This means more trading activity, speculation, and leverage in the market.
Historically, rising Perps have preceded big price moves, since leveraged traders tend to amplify price swings.
What’s standing in AVAX’s way?
While AVAX has shown resilience over the past week, the altcoin’s on-chain sustainability remains cause for alarm.
Although users keep accumulating the altcoin, it seems the momentum fades shortly after, reflecting unsustainable speculative activity.
Source: Artemis
According to Artemis, Avalanche’s Monthly User Retention Rate has declined continually month to month, reaching 2% at press time.
Such a sustained dip suggests that investors jump into the market to speculate, close positions, and disappear, indicating lower long-term conviction.
Can it hold this time?
According to AMBCrypto’s analysis, AVAX broke out as speculative interest surged, seeing a drastic shift in market sentiment.
As a result, the altcoin’s Relative Strength Index (RSI) rose to 69, then retraced to 65, signaling vigorous buying activity.
Over the same period, AVAX jumped above its Parabolic SAR, further confirming strengthened upside momentum.
Source: TradingView
That said, if market conditions witnessed over the past day hold, Avalanche will make more gains, reclaim $30, and target $32.7 resistance.
However, if speculators disappear as quickly as they appeared, based on historical trends, AVAX will drop to $27.5 support. Regardless, the bullish outlook remains as long as AVAX holds above its SAR at 26.7.
