AVAX has increased by 1.87% in the past 12 hours, with positive technical signals—MACD histogram turning positive, RSI trending upward, and short-term bullish momentum strengthening. However, the story behind this rebound is more complex than the numbers suggest.

This year, AVAX's performance has been quite poor, with a decline of 67.9% so far, and the entire Layer 1 token sector remains under a cloud. In the past 24 hours, there has also been a net outflow of over 2.42 million USDT, indicating ongoing capital outflows. Community sentiment reflects this predicament—bullish structures are breaking down, buying confidence is severely lacking, and many investors are expressing concerns.

Nevertheless, it is worth noting that institutional attitudes are quietly changing. Grayscale's latest submission of a spot Avalanche ETF adopts a physical backing model, which means that once approved, a large influx of funds could follow. This is an important signal, indicating that institutions are beginning to reassess this blockchain.

Even more interesting is AVAX's progress in the RWA (Real-World Asset Tokenization) field. Leading players like SkyBridge and Securitize are building infrastructure on Avalanche, reflecting market recognition of its practicality. Some voices within the community also point out that despite short-term underperformance, AVAX remains optimistic due to its RWA potential, with some even believing it has greater upside potential.

Overall, AVAX is currently at a delicate turning point—heavy annual declines, but renewed institutional interest and promising RWA applications. Whether these factors can offset ongoing capital outflows remains to be seen.