Transactions on the Avalanche (AVAX) network have grown by 6 times over the last year. The growth has been gradual over a period of about a year. Despite the consistent growth, the AVAX prices have been crashing, and even the recovery above $6 seems to be a dead cat bounce.
Avalanche network activity grows by 6x
The Avalanche network has shown growing adoption over the past year. Since June 2025, the transactions on the network have grown gradually, and currently the network has recorded 6 times the transactions in 2025. During June 2025, there were roughly a little over 15 million transactions that happened on a monthly basis on Avalanche, and by December 2025, the transactions gradually grew and reached above 60 million.
After reaching 60 million, the gradient of the rise in transactions flattens, and now there are just above 80 million transactions happening on Avalanche on a monthly basis.
Avalanche daily active users count stays consistent
When monthly transactions taking place on Avalanche have been rising, the active daily user numbers have been consistent. When these two metrics are put into context, the consistent daily user base shows that the existing users are currently engaging more with the network, which points to the increase in daily transactions.
Existing users are becoming more engaged with the network, generating a greater number of transactions through DeFi protocols, gaming applications, and other on-chain activities. The trend points to deeper ecosystem usage and stronger participation from the current user base, even as user growth remains steady.
Is the recovery above $6 a dead cat bounce?
Despite users’ engagement with the platform, prices have been crashing. In early June, the AVAX prices crashed below the $8.73 support level, a price level that was last seen in 2023. After crashing below this level, the coin lost another major support level at $6. However, as the prices below $6 were considered oversold, the market quickly corrected the prices, and AVAX is currently trading at $6.38. The community is still very suspicious about the recovery and thinks that it could be a dead cat bounce.
Dead cat bounces are common during bear markets. After a sharp crash, a token may rally 20–50%, leading investors to believe a recovery has begun. If the broader trend remains bearish, that rally can quickly fade and lead to another leg down. For the price action to not be called a dead cat bounce, AVAX will need to clear the $6.50 price level.
