Avalanche ETF spurs AVAX market optimism

AVAX surged more than 2% after VanEck amended its Avalanche ETF filing with the U.S. SEC and disclosed plans to increase yield through on-chain staking. The revised proposal indicated rising institutional confidence in Avalanche by naming Coinbase Crypto Services as the staking provider.

The proposal outlined that the Avalanche ETF  will have a 0.30% management fee despite general market volatility. According to the SEC report,  the staking provider will routinely credit staking incentives after subtracting any relevant compensation, such as the custodian staking facilitation fee.

Avalanche ETF spurs AVAX market optimism

The report revealed that Coinbase Crypto Services will take 4% from staking rewards under the terms of the “staking provider consideration” agreement.  Currently, there is no custodian staking facilitation cost.

The SEC report revealed that Benqi Finance (sAVAX), Hypha (STAVAX), and Yield Yak (yyAVAX) will provide a Liquid staking solution that allows holders of AVAX to deposit them with their smart contract.

The SEC reported that the Avalanche ETF will list and trade on Nasdaq under the ticker symbol VAVX, pending approval. VanEck is awaiting SEC approval in accordance with the generic listing requirements.

According to the VanEck proposal, the goal of the investment is to represent the performance of the AVAX price and the benefits of staking some of the trust’s AVAX holdings. The report mentioned that the Avalanche ETF will track the price of AVAX using the MarketVector Avalanche Benchmark Rate price index.

The Avalanche market is experiencing a resurgence of enthusiasm following the regulatory upgrade. Higher spot volumes and rising futures open interest led to AVAX prices rising by more than 2% over the last 24 hours, indicating a resurgence of purchasing activity in the derivatives markets.

The optimism surrounding VanEck’s proposal to incorporate staking into its Avalanche ETF remains a key driver of prices. On-chain data revealed that AVAX is currently trading at $12.22, representing a 1.9% increase over the previous day. 

On-chain data revealed that the token fluctuated within a $11.97–$12.37 range, while the 24-hour trading volume decreased by 46.63% to $289.18 million.  According to on-chain data, the price strength is holding despite a reduction in short-term trading activity.

According to CoinGlass, AVAX derivatives statistics indicated cooling activity despite recent price strength. Open interest increased by 0.70% to $471.41 million, indicating an increase in leverage participation following the recent surge, while total derivatives trading volume dropped 50.85% to $510.03 million.

On-chain data revealed that in a 4-hour time frame, futures open interest decreased by more than 3.93%, 0.28%, and 0.58%, respectively, on Binance, OKX, and Bybit.

On all major exchanges, positioning is still biased toward longs. The Binance AVAX/USDT long/short ratio is 1.98 by accounts and 1.56 by positions. According to on-chain data, the increase in long/short showed that traders still prefer upside exposure. The total 24-hour long/short ratio is 0.9658. OKX AVAX exhibited a bullish bias with a long/short ratio of 1.82 according to accounts

According to CoinGlass, liquidation statistics showed long-side dominance. On-chain data revealed that there were no significant short liquidations within the last hour. 

The analytic platform revealed that AVAX had $394.28K total liquidations during a 24-hour period, which included $83.14K in longs and $311.14K in shorts, indicating that short holdings were squeezed as prices increased.

Avalanche on-chain growth signals network maturity

Avalanche ($AVAX) network activity has significantly increased, reaching 2.5 million transactions per day by mid-2025. According to on-chain data, this is a seven-fold rise from January, demonstrating the network’s strong expansion. 

On-chain data revealed that the network’s fully diluted valuation (FDV) scenarios range from $15 billion to $50 billion, depending on execution and current market conditions.

According to Artemis Analytics, Avalanche’s stablecoin supply decreased by 5.68% over the last 30 days, reaching $1.6 billion. Avalanche reported $55.9 billion in adjusted transaction volume, up 42.45% over the previous 30 days, even when the number of stablecoin transactions fell 5.15% to 35.4 million during the same period. 

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