Avalanche (AVAX/USDT) — one of the highest-throughput smart contract blockchains — is seeing a wave of usage thanks to DEX trading, trading bots, and memecoin speculation driven by whales. New data by blockchain analytics firm Nansen indicates that Avalanche has turned the tables on DeFi activity and speculative transactions, suggesting a renewed interest from investors in the space.

Understanding Avalanche’s Recent Growth

Avalanche is a high-performance blockchain and ecosystem that enables enterprise applications and custom dApps to be built (or deployed, as they say) quite flexibly — whatever that means. It has drawn attention for its high scalability and low fees, making it a viable competitor to Ethereum and other Layer-1 chains. 


Over the last week, Avalanche booked a 66% increase in transactions, to hit 11.9 million transactions total, out of 181,000 active addresses. This surge in the number of transactions was higher than any other top chain, according to stats published by Cointelegraph on August 29, 2025.

 

The increase underscores the increasing shift of investor mindshare toward Avalanche, particularly for DeFi traders and crypto whales seeking to profit from the next wave of opportunities powered by memecoins.

A Brief Historical Background

Ava Labs, created by the computer scientist Emin Gün Sirer, released Avalanche in 2020. With its novel consensus mechanism, Avalanche Consensus, the network can process thousands of transactions every second and finalize transactions in sub-second. 


Avalanche has grown to be home to some of the best-of-breed DeFi (decentralized finance) applications, including the likes of Trader Joe, Aave, and Benqi, and is recognized as a key player in the DeFi ecosystem across all discovery and settlement functions. Avalanche arrived on the radar of the mainstream when financial institutions and governments began to get interested in it for data security and decentralized data logging.

 

Brtdk introduced numerous use cases for Avalanche, whose Core Developer recently announced that it, along with nine other blockchains, was chosen by the U.S. Department of Commerce to host real GDP data — marking a pivotal moment for public blockchain in the country.

Key Statistics Behind Avalanche’s Surge 

Three key factors are fuelling the rise in Avalanche activity, according to Nansen data analyst Nicolai Sondergaard:

  • DeFi (Decentralized Finance) Protocols – 60% Of Activity
  • Most of the activity is taking place on the top DeFi protocols like Trader Joe, Aave, and Benqi.
  • Trader Joe, Avalanche’s premier DEX processed $333 million of Avalanche Wrapped Ether (WETH. e) volume of trade during the previous week.

Bots and Mev - 25% of Activity

Price Shift bots are taking advantage of imbalances in prices among various forms of DEXes, creating much of the on-chain transaction volume. 
Whale Memecoin Speculation – 10% of volume

Big investors are betting on the launch of new memecoins, triggering huge volatility and transaction spikes. 

BLACK recorded $14 million in weekly trade volume,  and a few whale accounts held as much as $95,000 worth of BLACK tokens. 

The Centre of the Boom: Decentralized Exchanges

The explosive growth of Avalanche is still led by decentralized exchanges. 

 

Avalanche’s premier DEX, Trader Joe, led the way with six-figure trades from top Nansen-tracked wallets. 


High-frequency traders and institutional-grade bots are using Avalanche’s near-instant finality and low fees to perform flash loans, arbitrage trades, among others. 

 

Other significant contributors include:

  • Aave Lending Protocol – Tracked $624,000 in flash loan volume with DEX aggregators.
  • Benqi Protocol – Attracted $650,000 in deposits, mostly from trading bots and liquidity providers. 

 

This activity has made Avalanche one of the most active blockchains for DeFi-based trading, on par with the likes of Ethereum, Solana and Arbitrum. 

Institutional and Governmental Adoption

Although the majority of Avalanche’s current expansion is retail and whale driven, institutional adoption is starting to show up. 

 

That Avalanche could come to be used by the U.S. Department of Commerce to help publish GDP estimates is, in fact, a landmark development. 

 

Nansen’s Sondergaard added that it’s not a one-to-one correlation at the moment, while speculative and trading activities continue to fuel the recent spikes. 

Recent Trends and Market Implications

Avalanche’s recent run of bad news is a microcosm of the broader meme as well: memecoins and high-frequency decentralized trading have resurged to eclipse other prior pillars of blockchain activity, like they did that bull market cycle that began in 2021 and escalated to keep pace with the stock market’s ascent through early 2023. 


Key emerging patterns include:

 

  • Whale surge – The large wallets are dominating the memecoin trades, leading to the price surging and dropping like a yo-yo.
  • Growth of MEV Strategies – More sophisticated bots are competing for on-chain profits.
  • Centralized Implosion – Traders are coming to Avalanche for decentralized liquidity, leaving centralized exchanges in the dust. 

Forward-Looking Insights

The rocketing ascent of Avalanche shows how DeFi, memecoins and high-frequency trading are shaping the blockchain ecosystem. Should this trend persist, Avalanche could potentially become the leading speculative trading and decentralized finance platform with gas fees costing an arm and a leg on Ethereum and traders looking for a faster venue.


But her success in the future will rely on:
On memecoin trading and MEV operations.
More institutional adoption, following the big success with the U.S.Department of Commerce partnership, 2.

Now DIVERSIFICATION that can span away from speculation into the real world and enterprise solutions.

Conclusion

Avalanche’s recent influx of transactions further demonstrates the blockchain’s increasingly significant status as a hub for decentralized trading, algorithmic bots and speculative whale antics. Institutions will start coming in, but the phase of growth were in right now is driven by DeFi protocols, trading algorithms, and memecoin mania. 

 

This article is contributed by an external writer: Linda Titianitus. 

 

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