Over the past year, the Avalanche network has seen significant stablecoin supply growth, yet AVAX's price continues to decline.
Stablecoin Supply Growth
Avalanche's stablecoin supply has increased by over 70% in the past year. According to Avalanche, from March 2024, the supply grew from $1.5 billion to over $2.5 billion by March 31, 2025. Stablecoins are crucial in the crypto market as they act as a link between traditional and digital currencies.
Why isn't AVAX Increasing?
Despite the $1 billion increase in stablecoin supply, AVAX's token price has fallen nearly 60% over the past year, having reached $55.70 and now trading above $19. As explained by IntoTheBlock's senior analyst Juan Pellicer, a large share of the increase is due to tokens that remain idle instead of being actively utilized in DeFi.
Impact of External Factors
AVAX's price decline partly mirrors the broader crypto market downturn driven by investor uncertainty. A key factor is former U.S. President Donald Trump's upcoming announcement on new import tariffs. Nansen analysts predict a 70% chance of the crypto market bottoming in the next two months as economic conditions shift.
While stablecoin volumes continue to rise, AVAX's price faces pressure from external factors. Changing economic conditions may ease the situation in the future.
