Avalanche stablecoin supply has experienced a significant surge over the past year, reaching nearly $2.5 billion by March 31, 2025, according to Avalanche’s X post. However, the on-chain deployment of this capital remains limited, raising questions about its impact on the network’s utility token AVAX. 70% growth in stablecoins is a positive sign, but price movements tell a different story, with AVAX falling nearly 60% over the past year. While the increase in stablecoin supply indicates growing investor interest in the platform, the lack of active deployment within Avalanche’s DeFi ecosystem suggests that the current surge may be passive rather than driven by real market activity.