AVAX and “Baby Shark” Token Plunge Amid Broader Crypto Sell-Off – 26/9/2025
The crypto market extended its losses this week, with Avalanche’s AVAX and a “Baby Shark” memecoin among the hardest hit, highlighting ongoing volatility despite institutional and promotional efforts.
AVAX Extends Decline Despite Institutional Support
Avalanche’s native token AVAX fell 8% in 24 hours to $27.72, marking an 18% decline for the week. The token has struggled to clear resistance at $30.28, while support around $27.65 has proven fragile. Trading volume dropped to 121,896 tokens in early Friday sessions, suggesting that institutional selling may be slowing but has not reversed the downward trend.
The decline comes despite recent initiatives aimed at institutional adoption. AgriFORCE Growing Systems rebranded as AVAX One, announcing plans to raise $550 million to acquire and hold AVAX. Led by SkyBridge Capital founder Anthony Scaramucci and Coinbase Institutional’s Brett Tejpaul, AVAX One intends to hold more than $700 million in the token, positioning itself as a key custodian in Avalanche’s ecosystem. Regulatory approvals for token-related vehicles remain pending, and the market has so far shown limited reaction.
“Baby Shark” Token Collapses After Authorization Confusion
Separately, a cryptocurrency promoted as an official Baby Shark token fell 90%, dropping from $0.35 to under $0.064 on Story Protocol. Pinkfong Co., the Seoul-based creator of the viral children’s song with over 16 billion views, clarified that 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 to engage with the token, influenced by influencer endorsements and Story Protocol promotions. Analytics firm Bubblemaps reported that at least one entity acquired roughly $10 million of the token—about 7% of the supply—within the first minute of trading.
Market Implications
Both cases underscore the fragility of crypto market sentiment. Institutional and corporate initiatives have yet to stabilize AVAX, while unauthorized token launches can result in sharp, sudden losses, highlighting that hype and promotion alone are insufficient to sustain market confidence.
