AVAX Drops 18% in a Week as Hopes of Institutional Support Fall Flat

Crypto Sell-Off Hits AVAX and “Baby Shark” Token – 26/9/2025

The crypto market faced steep losses this week, with Avalanche’s AVAX and a “Baby Shark” token among the worst performers, highlighting persistent volatility despite high-profile institutional and promotional backing.

AVAX Extends Weekly Slide
Avalanche’s AVAX fell 8% in 24 hours to $27.72, marking an 18% drop for the week. The token struggled to surpass resistance at $30.28 and found only weak support near $27.65. Trading volume dropped to 121,896 tokens, suggesting that while institutional selling may be slowing, momentum has yet to reverse.

The decline comes despite efforts to boost institutional confidence. AgriFORCE Growing Systems rebranded as AVAX One and announced plans to raise $550 million to acquire and hold AVAX. Led by Anthony Scaramucci of SkyBridge Capital and Coinbase Institutional’s Brett Tejpaul, the firm aims to hold over $700 million in AVAX, positioning itself as a central custodian for the ecosystem. Yet the market has remained cautious, with regulatory approvals for token-related vehicles still pending.

“Baby Shark” Token Collapses
A cryptocurrency promoted as an official Baby Shark token crashed 90%, dropping from $0.35 to below $0.064 on Story Protocol. Pinkfong Co., the Seoul-based creator of the viral children’s song with over 16 billion views, confirmed the token had “no affiliation whatsoever” with the company.

The token, which briefly reached a $200 million market cap, was issued via IP.World, which admitted relying on incorrect rights from a Pinkfong licensee. Despite the clarification, traders continued activity, influenced by influencer endorsements and Story Protocol promotions. Analytics firm Bubblemaps noted that at least one entity acquired roughly $10 million (about 7% of the supply) within the first minute of trading.

Market Takeaway
Both stories underline the fragility of crypto sentiment. Institutional and corporate backing has yet to stabilize AVAX, while missteps in token authorization can trigger rapid losses, showing that hype and high-profile endorsements alone cannot counteract broader market selling pressure.