A newly released report from crypto market intelligence firm Messari offers a detailed look at Avalanche\u2019s (AVAX) performance during the fourth quarter (Q4) of 2025, revealing a sharp contrast between weak price action and record\u2011breaking on\u2011chain activity.<\/p>\n
According <\/a>to Messari, Avalanche\u2019s native token, AVAX, experienced a steep decline during the final quarter of the year. The token fell 59.0% quarter\u2011over\u2011quarter (QoQ) and 65.5% year\u2011over\u2011year (YoY), dropping from around $30.00 at the end of Q3 in September to approximately $12.30 by the close of Q4.\u00a0<\/p>\n Avalanche\u2019s circulating market capitalization mirrored that drop, falling 58.3% QoQ and 63.9% YoY from $12.7 billion to $5.3 billion. Yet, the decline in valuation also impacted Avalanche\u2019s relative standing among digital assets.\u00a0<\/p>\n AVAX slipped from 14th to 21st place in rankings by circulating market cap <\/a>over the quarter. Despite this, Messari highlighted that network usage continued to expand, effectively breaking the typical link between token price performance and network fees.\u00a0<\/p>\n While total fees measured in US dollars declined 11.7% QoQ, that drop was modest compared with the 59.0% fall in AVAX\u2019s price. In native terms, fees paid on the network increased meaningfully. Fees denominated in AVAX rose 24.9% QoQ, climbing from 105,719 AVAX to 132,016 AVAX.\u00a0<\/p>\n Average daily transactions on the C\u2011Chain jumped 63% to 2.1 million, while a wave of liquidations during the market crash on October 10<\/a>, 2025, generated $520,715 in transaction fees. Messari noted that this was the highest single\u2011day fee total recorded on Avalanche since February 2024.<\/p>\n Looking more broadly, Avalanche\u2019s ecosystem reached new activity highs in Q4 2025. Aggregate usage across the C\u2011Chain and all Avalanche Layer\u20111 networks accelerated sharply.\u00a0<\/p>\n Average daily transactions<\/a> increased 4.5% QoQ and surged 1,162.1% YoY to 38.2 million. At the same time, average daily active addresses climbed 25.1% QoQ and an extraordinary 16,360.3% YoY, reaching 24.7 million.\u00a0<\/p>\n Activity on the C\u2011Chain alone reached historic levels. Average daily transactions rose 69.0% QoQ and 799.3% YoY, making Q4 2025 the busiest quarter on record for the chain.\u00a0<\/p>\n Staking metrics, however, reflected the pressure from falling prices. The total USD value of staked AVAX declined 59.9% QoQ and 69.1% YoY to $2.3 billion, largely tracking the token\u2019s price drop.<\/p>\n Avalanche\u2019s decentralized finance ecosystem also continued to evolve despite market headwinds. Messari reported that the DeFi Diversity Score, which measures how many protocols account for 90% of total value locked, rose 5.9% QoQ and 63.6% YoY, increasing from 17.0 to 18.0.\u00a0<\/p>\nAvalanche Sees Record Transaction And User Activity\u00a0<\/h2>\n
Rising DeFi Base And Major RWA Growth<\/h2>\n