- Avalanche’s price climbed to about $29.82 on Thursday, buoyed by news that drove a roughly 10% gain.
- The rise follows the Avalanche Foundation’s plans for a $1 billion AVAX treasury initiative.
- AVAX is also listed among cryptocurrencies that could benefit from anticipated crypto ETFs.
Avalanche’s native token, AVAX, jumped nearly 10% after reports that the Avalanche Foundation is planning a sizable treasury move. On Thursday, the token reached highs near $29.82 while daily trading volume increased by more than 73%.
The price surge followed news that the Avalanche Foundation is in advanced talks to raise roughly $1 billion to build an AVAX treasury reserve.
Avalanche price gains amid $1 billion AVAX treasury
The Avalanche Foundation, the non-profit organization supporting the Avalanche blockchain, is reportedly preparing to establish two U.S.-based digital asset treasury companies designed to accumulate AVAX tokens.
According to reports, those involved expect the initiatives to raise about $1 billion. The transactions connected to this plan are said to be nearing completion and could finalize in the coming weeks.
The funds raised would be used to purchase millions of AVAX tokens, likely acquired at a discount directly from the Foundation.
One proposed deal, led by Hivemind Capital, would aim to secure up to $500 million via a private investment in a Nasdaq-listed company, with involvement from noted crypto investors. The second plan would convert an existing company into a similar treasury vehicle to target another $500 million.
The $1 billion treasury plan arrives as Avalanche sees significant growth in stablecoins and real-world asset (RWA) activity on its network. Over the past quarter, Avalanche’s stablecoin market capitalization rose by roughly 58% to more than $2.2 billion, while RWAs have jumped by nearly 90% over the previous month.
Market reaction to the treasury news helped push AVAX above $29, opening a potential path for further upside as bullish momentum builds.
What’s the outlook for AVAX price?
The recent rally reflects renewed investor interest in Avalanche as it competes with other smart-contract platforms such as Ethereum and Solana, which have seen similar benefits from treasury accumulation strategies.
On-chain data indicates crypto treasury companies have raised substantial capital to support token stockpiling and strategic holdings, and as these treasury efforts grow, tokens like AVAX may stand to gain.
Tokenization initiatives and potential ETF approvals are also meaningful catalysts. AVAX is among the tokens included in ETF-related discussions, and favorable market conditions combined with these structural developments could stabilize Avalanche’s price and support further gains.
If buying pressure persists, AVAX could face tests of higher levels, with a potential range around $40–$45 cited by some market observers. Still, broader market sentiment and regulatory developments will be decisive in determining whether Avalanche can sustain its gains or encounter resistance amid wider crypto market volatility.