AVAX price could be on the verge of a pivot after a bearish outcome last week, and the bulls might get a confidence boost courtesy of VanEck.

The latter is reportedly venturing into the real-world assets through the Avalanche blockchain.

Avalanche (AVAX) price could be on the verge of a pivot after a bearish outcome last week, and the bulls might get a confidence boost courtesy of VanEck. The latter is reportedly venturing into the real-world assets through the Avalanche blockchain.

Before we get into the AVAX price action, here’s what the recent announcement revealed About VanEck and its involvement with Avalanche. The investment firm announced plans to launch a new digital assets fund dubbed the VanEck PurposeBuilt Fund.

The new fund will reportedly invest in venture-backed projects spanning across different industries with a particular focus on RWAs. This suggests that the fund may incentivize development within the Avalanche ecosystem.

The new Avalanche fund marked an important milestone and one that could potentially bolster Avalanche’s position in the competitive layer 1 segment. Especially considering that it has been overshadowed by the likes of Solana and Ethereum.

Is the RWAs segment enough to bring Avalanche into the limelight?

The RWAs appears to be one of the narratives playing out in the 2025 bull run. VanEck’s push into the segment through Avalanche underscores the network’s opportunity to take advantage of that narrative.

The announcement is reminiscent of a recent move by JPMorgan aimed at pursuing the same RWAs narrative through Chainlink. The two scenarios are somewhat different but the benefits are clear in favor of WEB3.

Both situations highlight the segment’s growing appeal and the value that is being channeled into RWAs. In Avalanche’s case, VanEck represents one of the top institutional investors and the newly announced investment could thus clear a path for more investment.

As far as the impact was concerned, the heavy focus on using the fund to fuel investment within the network may pay off in the long term. Avalanche has been struggling with low chain and app revenue which is was reflection of its performance especially in the last 12 months.

Avalanche TVL in particular hovered at a fraction of its peak levels observed in 2021. However, DEX volume on the network did demonstrate significantly elevated activity levels compared to 2023 and 2024.

AVAX Price Recap

AVAX price did experience a bit of bullish momentum in the second week of May, with price peaking close to $27. However, it retreated to the lower $20s after failing to sum up enough bullish momentum to keep the bulls in charge.

Despite the pullback, AVAX price still managed to stay above its 50% RSI level, indicating that the momentum was still in favor of the upside. Its MFI indicator signaled that some accumulation was at play, but demand remained relatively weak.

AVAX spot flows remained in the red with outflows clocking $2.26 million in the last 24 hours. Nevertheless, derivatives volumes were up 39.5% to $857 million. Open interest was up 4.15% to $526 million.

While AVAX price action remained relatively subdued, so far this week, it has gradually been pushing higher from its YTD lows achieved in April. This could signal that some accumulation has been taking place.

In addition, AVAX price was still significantly discounted from its December 2024 peak, which may still make it an attractive coin. Especially compared to the coins that have already achieved much higher recovery.

Demand for AVAX among the whale cohort amounted to about $1.8 million worth of inflows in the last 24 hours. This was demand across Binance, OKX and Coinbase spot segments. Demand was notably higher in the derivatives market with Binance perpetuals along contributing over $13 million.

The Avalanche-native coin’s value proposition was especially higher considering the upcoming VanEck investment. While this is within the realm of speculation, it could take weeks or months until the actual impact becomes apparent.