Avalanche has witnessed a significant increase in on-chain activity, with daily transactions reaching 3.5 million, the highest in the past year, according to Nansen. This surge is attributed to factors such as Grayscale's launch of an AVAX staking ETF, regulatory clarity from the SEC and CFTC, and Broadridge's on-chain proxy voting. Despite the rise in network usage and active addresses, AVAX remains in a bearish trend. The altcoin's price continues to struggle, staying below key moving averages and maintaining a downtrend since falling below $10. Although there is notable market demand, particularly from large entities, with $49 million in outflows over the past three days, it has not been sufficient to reverse the bearish structure. For a trend reversal, AVAX needs to break above $10 and surpass the 20, 50, and 100-day EMAs.