avalanche($AVAX) is a layer 1 blockchain that was once seen as a rival to Ethereum in 2021, but its price has fallen more than 94% from its all-time high ($ATH). The question remains whether some catalyst will help this altcoin make a comeback by 2026.
Behind the disappointing price performance, increased infrastructure development and institutional adoption shape a potentially promising recovery scenario for the ecosystem.
Help from Japan: When $2 billion moves “on-chain” with Avalanche
One of the most important developments that strengthens Avalanche’s position is Progmat’s decision to migrate its assets to Avalanche, Japan’s largest digital securities (security token) platform.
More than $2 billion of tokenized real-world assets (RWA), including real estate and corporate bonds, are moving from the Corda platform to Avalanche.
According to Avalanche’s report, Progmat currently accounts for approximately 63% of issuance and 53.8% of projects in Japan’s digital securities market, with total issuance exceeding 216.9 billion yen. The market is expected to exceed 1.5 trillion yen (approximately $7 billion) by the end of 2026.
Progmat’s decision to choose Avalanche over competing platforms represents a strong endorsement of Avalanche’s technology. The network allows financial institutions to create customized blockchains that are compliant with regulations while leveraging the security of the main network.
How VanEck sees Avalanche
A recent report from investment firm VanEck outlines why Avalanche continues to be so attractive.
VanEck emphasizes that the heart of the system lies in Snowman’s consensus mechanism. This mechanism allows block generation in just 1.2 seconds, achieving near-instantaneous transaction finality.
“Avalanche’s competitor Ethereum generates blocks every 12 seconds, but finality takes approximately 12.8 minutes. This allows Avalanche users to see their transactions settle within seconds, giving the chain a significant practical advantage in financial use cases,” the VanEck report states.
The report also highlights that Avalanche’s lower transaction fees give it a competitive advantage compared to its competitors.
Avalanche’s transaction fees are lower than its competitors. Source: Van Eck
Additionally, VanEck’s Spot Avalanche ETF remains the only $AVAX ETFs currently traded on the market.
However, data shows that investor demand for exposure remains modest. After one month of trading, the total net worth reached $11.5 million. By comparison, LINK ETF has raised over $81 million and SOL ETF has raised over $800 million.
can $AVAX Will it regain its former glory?
According to a report by CryptoRank, some of the major altcoins are $AVAX and DOT experienced the worst drawdowns, each exceeding 94%. Such a decline is a huge shock to many investors.
$ATH drawdown. Source: CryptoRank”>
Major altcoins $ATH Drawdown. Source: CryptoRank
However, data from Avalanche shows positive momentum building in February as users return to the network. Daily active addresses exceeded 1,300,000, the highest level in the history of this layer 1 blockchain.
Daily active users of Avalanche’s C-chain. Source: Abax.
“$AVAX‘s new slogan should be “Believe in technology, not price,” said investor Emperor Osmo.
A recent report from BeInCrypto also noted that negative sentiment is prevalent, causing many investors to hesitate before allocating capital. However, once capital flows return, projects with strong fundamentals may become the preferred choice for investors.
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