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Major L1 Blockchain: Eyeing +285% Upside by April 2026?

Hello and welcome to our analysis edition of Crypto Intel, where we bring to light a coin with significant upside potential. If you’re not looking for more emails from us, just click here to unsubscribe!

Avalanche (AVAX) is the native token for a leading Layer 1 blockchain positioned as a high-speed, low-cost alternative to major smart contract platforms.

As the digital asset space matures, this L1 is capturing significant adoption from major global brands in gaming, finance, and enterprise.

Despite a significant 25.7% price drop over the last 30 days, the network's on-chain activity has been surging, with its DeFi and bridged Total Value Locked (TVL) showing strong growth.

This divergence between recent market sentiment and fundamental network health may present a compelling opportunity for investors, with the token currently trading around $17.49.

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Tokenomics, Strategic Positioning, and Use Cases

The native token is used to pay transaction fees across its network of custom blockchains, known as Subnets, and to secure the network through staking.

This L1's unique architecture uses three core chains (X-Chain, C-Chain, and P-Chain) to optimize for asset exchange, smart contracts, and validator coordination, respectively.

This technical foundation has attracted major partnerships and real-world use cases, including FIFA launching its NFT platform on a dedicated L1 and Web3 gaming giant Nexon bringing its iconic MapleStory franchise to the network.

Further institutional interest is highlighted by spot ETF filings from major asset managers like VanEck and Grayscale and enterprise solutions being built by firms like Gelato.

Action: Monitor the growth in the number of Subnets and the daily transaction volume, especially from gaming applications.

Track progress on the spot ETF filings with the US SEC as a major potential catalyst.

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Financial Outlook and Market Position

The project's native token is currently ranked #19 among all cryptocurrencies and #10 among Layer 1 coins, with a market cap of approximately $7.38 billion.

Its Fully Diluted Valuation (FDV) is around $7.99 billion, with about 422 million tokens circulating out of a hard-capped max supply of 720 million.

The broader L1 sector has remained relatively stable this year, while this token has seen its price decline by over 50% year-to-date.

In sharp contrast, its DeFi TVL has grown by 9.67% to $1.452 billion in the same period, and its bridged TVL surged 33.27% in the last month alone, suggesting a significant disconnect between network value and token price.

Action: Observe the token's price performance relative to its strong TVL growth as a key valuation metric.

Renewed market interest in L1s or positive news on an ETF could help close this gap.

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Bear Case

Despite its strong technology and partnerships, the project faces headwinds from a highly competitive Layer 1 market, where it has recently underperformed.

The token's significant price drop in 2025 reflects this intense pressure and illustrates its sensitivity to broader market volatility.

The platform's success is tied to its ability to continue attracting high-value applications and maintaining user activity in the face of new and existing competitors.

Furthermore, regulatory uncertainty for Layer 1 blockchains and potential delays or denials of spot ETF applications in the US remain persistent risks for the token's price.

Action: Diversify across the Layer 1 sector to mitigate project-specific and competitive risks.

Monitor developer activity and on-chain metrics to ensure the network's fundamental growth continues.

Outlook and Investment Thesis

This Layer 1 is a formidable player in the blockchain space, differentiated by its high throughput, low fees, and proven ability to attract blue-chip partners like FIFA and major financial institutions.

The stark contrast between its declining token price and its surging on-chain metrics, like DeFi and bridged TVL, presents a strong case for potential undervaluation.

Upcoming catalysts, including the possibility of a spot ETF in the US and growing adoption in sectors like gaming and real-world assets, provide a clear path for future growth.

Analyst forecasts are bullish, projecting a 2025 price range between $17.54 and $43.09, with a more significant surge anticipated in 2026.

The price is forecasted to reach a potential high of $66.96 by April 2026, representing an upside of over 285% from current levels.

Action: Consider accumulating the token based on the clear divergence between its on-chain growth and recent price performance.

Target the 2025 analyst forecast range of $17.54−$43.09, with an eye on the 2026 high of $66.96, watching for ETF approvals and new major partnerships as key catalysts.

That's all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Benjamin Vitaris
Crypto Intel