The stablecoin supply on the Avalanche network has surged over the past year, but this has not translated into increased demand for AVAX.
Increase in Stablecoin Supply on Avalanche
The stablecoin supply on the Avalanche platform increased by over 70% in the past year, from $1.5 billion in March 2024 to over $2.5 billion by March 31, 2025. This increase is often viewed as a sign of growing investor interest and potential buying activity.
Declining Interest in AVAX Token
Despite the increase in stablecoin supply, the Avalanche token (AVAX) remains on a downward trend, dropping nearly 60% over the past year. Experts attribute this to passive investor behavior holding stablecoin liquidity without actively deploying it within Avalanche's DeFi ecosystem.
Cryptocurrency Market Prospects
Analysts predict a high probability for the crypto market to bottom by June this year, amid ongoing tariff negotiations in the US and global market uncertainties.
While Avalanche's stablecoin supply is on the rise, the fading interest in AVAX highlights insufficient DeFi activity in the network. Experts see current conditions as a potential stabilization opportunity.
