TL;DR:
- Avalanche's market capitalization increased by 67% in Q3 2025 to reach $16.8 billion.
- DeFi activities and subnet expansion have resulted in a significant increase in users and revenue.
- The systematic deployment of Avalanche subnets strengthens long-term prospects.
Avalanche had one of its strongest quarters ever. According to Messari Avalanche situation Q3 2025 report, The network's market capitalization soared 67%reached $16.8 billion by the end of September. This growth reflects renewed investor confidence, reinforced by a recovery in DeFi activity and increased participation from institutional investors. This report highlights that Avalanche continues to strengthen its role as one of the most active ecosystems in the Layer 1 space.
DeFi Growth, Subnet Expansion, and Institutional Momentum Drive Avalanche’s Rise
DeFi resurgence and user engagement fueled momentum this quarter. Avalanche's total value locked (TVL) increased 55% in the third quarter due to increased liquidity on platforms such as Benqi, Trader Joe, and DeltaPrime. Daily active addresses also increased by 42%, and network revenue reached $6.1 million, an increase of 63% sequentially. These indicators highlight a steady recovery in user activity and trading volumes after a prolonged period of market cooling at the beginning of the year.
Subnetting continues to be a distinctive feature of Avalanche's scalability strategy. Messari reported that more than 130 subnets were deployed and 20 new subnets were launched during the quarter. The introduction of the HyperSDK upgrade simplifies subnet creation and allows developers to customize blockchains for specific applications. The gaming and real-world asset (RWA) subnets in particular have grown rapidly, reflecting Avalanche's versatility across use cases beyond DeFi.
Institutional adoption is becoming a key pillar of Avalanche's expansion. The report notes that several financial institutions have expressed interest in implementing permitted subnets to test tokenization and payment solutions. Partnerships with companies in Latin America and Asia also contribute to the global expansion of the ecosystem. This organic momentum, combined with technological innovation and network scalability, positions Avalanche as a strong contender in the next market cycle.
Looking ahead, Messari suggests that Avalanche's long-term sustainability depends on a balance between scalability and decentralization. The report concludes that the network's economic and technical fundamentals remain strong, and continued developer engagement and ecosystem diversity are likely to support continued growth through 2026.
