Avalanche (AVAX) has snapped back into bullish gear, jumping about 10% in the past 24 hours as a wave of institutional activity converges on the network. Why the surge - More than $2 billion in real-world assets (RWAs) are set to migrate to Avalanche, a move that directly feeds institutional-grade demand on-chain. - Progmat — the firm leading this push — is launching a dedicated Avalanche L1 with built-in on-chain privacy and a Japan-focused digital asset infrastructure. That combination aims to boost regulatory alignment, institutional trust, and on-chain activity in a region where compliance matters. Why this matters for AVAX Dedicated L1 deployments historically improve scalability and give projects greater flexibility to meet regulatory requirements. By hosting a Japan-focused RWA infrastructure, Avalanche could become far more attractive to traditional finance players, strengthening its case as an institutional RWA hub in the next market cycle. Market signals supporting the rally - Open Interest on the Avalanche network rose 18% to roughly $200 million over the same period, indicating growing derivatives activity and potential fresh capital inflows (source: Coinalyze). - Derivatives and spot flows are aligned: buyer control dominated on futures, while the spot taker cumulative volume delta also pointed to buyer dominance (source: CryptoQuant). That synchronicity typically supports sustained rallies. - Technically, AVAX recently broke out of a wedge consolidation — a pattern that has historically preceded sharp expansion phases for the token (source: TradingView). Short-term price focus Traders are eyeing a $3.41 million liquidity cluster around $15 as the next meaningful target for bulls. Liquidity clusters often act like price magnets during trending moves, and with institutional RWA inflows, rising open interest, and buyer dominance across markets, $15 looks like a realistic short-term objective if momentum holds (source: CoinGlass). Bottom line The combination of a major RWA migration, a Progmat-led private L1 deployment targeting Japan, and confirming on-chain and derivatives signals has re-energized AVAX. While the catalysts point to more upside and a longer-term institutional narrative for Avalanche, investors should remain mindful of market risk and volatility. Disclaimer: AMBCrypto's content is informational and not investment advice. Trading cryptocurrencies carries high risk; conduct your own research before making decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

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