Why isn’t Avalanche’s 295% DeFi deposit surge enough for AVAX’s price?

Avalanche [$AVAX] has been seeing stronger DeFi adoption lately, even though its price is not correlated with this trend. Simply put, the network activity on the chain is thriving, despite its lagging price action.

For instance, Avalanche deposits on Aave v4 surpassed $225 million despite launching this July. This move was Aave v4’s first expansion beyond Ethereum [ETH].

The total deposits on Aave v4 crossed $1.75 billion, an all-time high. This figure indicated that Avalanche deposits grew by over 295% in just two weeks since the end of October.

At the same time, active loans for Aave v4 on Avalanche topped the $100 million-mark. This implied that both liquidity and utility were growing on the chain.

$AVAX One shifts focus to treasury after Q3’s reported gains

Meanwhile, $AVAX One [Nasdaq: AVX], which is a treasury that focuses on Avalanche tokens, released their Q3 report.

The firm reported $49.90 million in Q3 net income, driven by $55.10 million in unrealized digital asset gains. The revenue was $2.40 million, up more than 4 times year-on-year (YoY) compared to $526K in Q3 of 2025.

Additionally, over $14.90 million of convertible debt was eliminated in Q3 with the balance now zero. The focus is now on buying the $AVAX token and treasury shares.

The firm now holds 14.17 million $AVAX, with 99.7% of this amount staked at an annualized rate of 5.85%. Moreover, the treasury repurchased 384K shares in Q3 and another 701K shares in October.

Altogether, the altcoin is now seeing exposure to institutional capital and growing DeFi activity. This could strengthen the network’s momentum, even though the price charts aren’t exactly looking pretty.

$AVAX tests $8-support

At the time of writing, $AVAX was testing a key support level as its price extended the sideways range between $8 and $9. Despite the scale of participation and buying activity from $AVAX One, these efforts aren’t exactly translating into real demand.

The level could break and test $7.82 as selling momentum gains pace. The resurgence of the red MACD histogram seemed to hint the same too.

From the market structure, the altcoin may rebound from the $8-level as it has done over the past five instances.

On the other hand, bears may break down the level as the broader market is weak. That puts $7 as the next demand level where bulls could return.

Final Summary

• Avalanche’s DeFi adoption has been growing stronger, with its Aave v4 deposits surging by 265% in only two weeks.
• $AVAX One reported $49.90 million in Q3 net income as the treasury shifted focus into buying the altcoin.