- Daily avalanche transactions rose from 300,000 to 6.2 million in one year.
- AVAX’s opening of $23.3 million could shape the price action in the short term.
- AVAX must hold support at $6.32 to keep the bullish momentum alive.
The Avalanche enters a critical week with two contradictory forces shaping the outlook for AVAX.
On the one hand, activity on the network has risen sharply over the past year, highlighting growing usage across the ecosystem.
On the other hand, the market is preparing to open a token worth approximately $23.3 million on July 21, an event that could influence short-term price action as traders evaluate whether the additional supply will lead to new sell-offs.
At the time of writing, AVAX is trading at $6.58, up 2.1% over the past 24 hours.
While recent gains indicate some buying interest, the token remains well below its historical peak, raising questions about whether improving network fundamentals could ultimately translate into stronger price performance.
Avalanche network activity outperforms price performance
Avalanche recorded one of the strongest periods of growth on the series in recent months.
Daily transaction activity expanded significantly over the past year, rising from approximately 300,000 transactions per day during the second quarter of 2025 to a peak of 6.2 million daily transactions in July 2026.
Although activity later eased from that peak, the network was still processing about 2.62 million daily transactions, a level still much higher than a year ago.
The numbers suggest that user activity has continued despite broader weakness in the cryptocurrency market.
The increase in network usage has also been accompanied by a constant burning of tokens.
About 135.65 AVAX were recently removed from trading through Avalanche’s fee burn mechanism, showing that on-chain activity remained active even during periods of price consolidation.
Liquidity has also improved across the ecosystem.
Avalanche’s stablecoin balances have expanded significantly in recent months, at one point exceeding $2 billion, reflecting increased capital flow through decentralized applications and blockchain services built on the network.
Despite these developments, AVAX has struggled to achieve a sustainable recovery.
The difference between stronger blockchain activity and lower price performance has become one of the major themes surrounding Avalanche in recent months.
The FIFA partnership adds another long-term milestone
The Avalanche have also strengthened their position as one of the largest sports organizations in the world.
FIFA has chosen Avalanche as the blockchain infrastructure supporting the FIFA Collect Layer-1 dedicated network, bringing blockchain technology to a platform connected to millions of football fans around the world.
The timing was particularly notable given that the FIFA World Cup is one of the world’s biggest sporting events.
The just-concluded 2026 FIFA World Cup has increased the visibility of blockchain-powered digital collectibles and fan engagement initiatives.
High ticket prices associated with dynamic pricing models and travel restrictions affecting some international supporters have attracted widespread attention.
Opening a token puts short-term price levels into focus
The live event that catches the attention of traders is… The token unlock is scheduled for July 21which will release approximately $23.3 million of AVAX into the market.
Although the open represents only about 0.7% of the current token supply available for trading, such events often receive close attention because they can increase short-term selling pressure if recipients decide to take profits.
Technically, AVAX is approaching an important resistance level at $6.62, which corresponds to the 38.2% Fibonacci retracement.
A decisive move above this level could shift attention towards the next upside target around $6.80.
On the downside, the main support level remains at $6.32. The price has managed to hold above that area so far, but a break below it would increase the likelihood of a return towards the recent swing low near $5.85.
Trading volume around the token open is likely to become one of the key indicators that traders monitor as additional tokens enter trading.
