Avalon Labs has taken a significant financial step with the purchase and subsequent burning of $1.88 million worth of its AVL coin. This move successfully removed 37% of the AVL coins from circulation, propelling the coin’s price by 9%, arriving at $0.15.
How Did Avalon Labs Implement the Coin Burn?
Starting in June, Avalon Labs began acquiring AVL coins from the Bybit exchange using 1.88 million USDT. The average purchase price was approximately $0.1347, leading to the permanent removal of 13.9 million coins from the market. Cumulatively, 93.9 million AVL coins have been burned, comprising 37% of the total supply.
The buyback and burn initiative was funded through Avalon Labs’ monthly protocol revenues. These were strategically utilized to purchase AVL on the Bybit exchange. The purchased coins were then sent to a burn address, occurring routinely.
Avalon Labs emphasized its ambition to carve a niche in blockchain-based capital markets during this announcement. Earlier this year, the company also saw its BTC Lending protocol integrated by Bybit, fostering a link between centralized and decentralized finance.
Does the Coin Burn Boost Market Performance?
The AVL coin’s price jumped by 9% to reach $0.15 following the burn. However, it remains significantly below its all-time high of $0.70, which it achieved in May. Similarly, daily trading volumes ascended by 9%, surpassing $25 million, indicating heightened activity.
Currently, the circulating supply of AVL coins stands at 161 million out of a total cap of 1 billion, meaning the market is only working with approximately 16.6% of the total possible coins. Future unlock events could impact these supply dynamics.
AVL initially entered the trading world following a February AirDrop. Notably, the project attracted investment from YZi Labs, a company supported by Binance, as early as May.
Concrete findings include:
- The elimination of 13.9 million AVL coins represents a strategic supply reduction.
- AVL’s trading volume surged to over $25 million post-announcement.
- AVL’s current market status reflects only 16.6% of its total potential supply.
Avalon Labs’ latest move showcases their strategic financial planning and determination to influence their coin’s market value, despite the price still lagging significantly behind its historic peak.
