Avalon Labs, a Bitcoin-focused financial services platform, has announced the burn of 80 million AVL tokens, effectively removing around 44% of the circulating supply from the market.
The burned tokens primarily consisted of unclaimed allocations from a previous airdrop campaign that launched in March 2024. That campaign had distributed a total of $20 million worth of AVL tokens to eligible participants, with a significant portion going unclaimed.
By permanently eliminating these unclaimed tokens, Avalon Labs aims to reduce token supply, enhance scarcity, and potentially boost long-term value for existing holders.
AVL Jumps 19% as Token Burn Boosts Market Confidence and Strengthens Tokenomics
Token burns are a common strategy in the crypto industry to manage inflation and strengthen token economics, and this move has already sparked a positive market reaction—AVL’s price surged over 19% following the announcement.
The strategic burn is also seen as a step toward reinforcing investor confidence and signaling Avalon’s commitment to a sustainable token model.
The announcement follows Avalon Labs’ recent completion of a strategic funding round led by YZi Labs, further strengthening its position in the Bitcoin ecosystem.
As Avalon continues to expand its offerings and ecosystem, the burn highlights its focus on responsible tokenomics and long-term value creation for its community and investors.
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What Are Token Burns?
Token burns are the process of transferring a specific quantity of cryptocurrency tokens to an unusable wallet address in order to permanently remove them from circulation.
Because of the scarcity created by this reduction in the overall supply, the token’s value may eventually rise.
In order to reward holders, control inflation, and demonstrate a sustained commitment to a robust token economy, cryptocurrency companies use token burning as a strategic tool.
They can also increase investor confidence and spark fresh interest, particularly if carried out openly and in line with more general objectives like ecosystem expansion or unclaimed token management, as demonstrated by the recent burn at Avalon Labs.
Also Read: Bitget Unveils Ambitious Plans For BGB Token, Including $5 Billion Token Burn
Strong Market Reaction Reflects Investor Confidence in Avalon’s Scarcity-Driven Tokenomics
The news of an 80 million token burn that cut the supply in circulation by about 44% caused Avalon Labs (AVL) to jump more than 19%.
Investor confidence in the company’s dedication to robust tokenomics and scarcity-driven value support was highlighted by the market’s quick, overwhelmingly positive response.
Technically speaking, AVL is now trading close to $0.206, and recent volume has almost doubled as interest has increased.
The 14-day Relative Strength Index (RSI) shows that AVL is at 43, which is neutral and indicates that the market is neither overbought nor oversold.
It is showing possible medium-term support as its 50-day simple moving average is rising upward at $0.245.
Even while there are still conflicting broader technical signals, the burn catalyst and growing volume momentum have put AVL in a position to potentially continue—as long as Bitcoin sentiment stays positive.
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