Can Avalanche (AVAX) Rise From the Ashes After a 94% Plunge? You Won’t Believe the Secrets

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Avalanche (AVAX), that once-cocky layer-1 blockchain determined to topple Ethereum in 2021, now finds itself clinging to dear life after plummeting more than 94% from its all-time high (ATH). By 2026, the burning question is whether any elusive miracle could drag this altcoin back into the light.

Behind the tragic price decline, the ever-diligent beavers of infrastructure development and the gradual, but undeniable, institutional love affair with the network could serve as the prime ingredients for a stunningly unexpected recovery.

A Boost From Japan: When $2 Billion Moves “On-Chain” With Avalanche

Enter Progmat, the new shining knight, waving the flag of Avalanche. Japan’s largest digital securities platform has decided to migrate its assets to Avalanche, and we’re talking about more than $2 billion in tokenized real-world assets (RWA) – think real estate, corporate bonds, and probably some sushi-themed NFTs for good measure.

And it’s not just a half-hearted dabble. Progmat is responsible for a hefty 63% of issuance volume and over half of the projects in Japan’s digital securities market. This titan’s decision to embrace Avalanche over others is less about romance and more about the hard facts of Avalanche’s tech.

With projections showing the market hitting ¥1.05 trillion (roughly $7 billion) by the end of 2026, it seems like Avalanche may have some serious fans in the land of the rising sun.

How VanEck Views Avalanche

Meanwhile, VanEck, that ever-studious investment firm, is laying out why Avalanche still hasn’t been relegated to the crypto graveyard just yet. According to their report, the pièce de résistance of the Avalanche ecosystem is its Snowman consensus mechanism, which produces blocks in just 1.2 seconds, achieving near-instant transaction finality. Talk about efficient – Ethereum, eat your heart out!

“Ethereum’s competitors produce blocks every 12 seconds while finality takes around 12.8 minutes. By comparison, Avalanche lets you settle transactions in mere seconds. It’s like buying a coffee at a café and having it arrive before you’ve even paid.” – VanEck

The report also spills the tea on Avalanche’s low transaction fees. Why pay more when you can use a network that doesn’t feel like it’s trying to sell you a beachfront property?

Oh, and let’s not forget: VanEck’s Avalanche ETF is still the only one of its kind in the market. But despite this ultra-exclusive status, it’s hardly a gold rush. A month of trading only brought in $11.5 million in assets, a far cry from the $81 million in LINK ETFs or the $800 million in SOL ETFs.

Can AVAX Regain Its Former Glory?

CryptoRank, the harbinger of doom and gloom, recently pointed out that AVAX, alongside Polkadot (DOT), has endured one of the most gut-wrenching drawdowns in crypto history – a full 94% plunge. To put it mildly, this is not the kind of thing you bring up at dinner parties.

But wait! The situation might not be as grim as it seems. February saw Avalanche experiencing something of a renaissance, with daily active addresses breaking records and climbing to over 1,300,000. It’s like the tech community had a collective “Eureka!” moment.

“AVAX’s new slogan should be: Believe in the tech, not in the price,” quipped investor Emperor Osmo. Who’s got time for price tags anyway?

Of course, not everyone’s ready to dive headfirst into this pool just yet. BeInCrypto’s recent report suggests that there’s a smattering of skepticism in the air, causing investors to tiptoe rather than dive. But should the winds change, projects with solid foundations like Avalanche might just become the next big thing.

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2026-02-26 17:41