Avalon Labs completed a substantial financial maneuver by carrying out a $1.88 million buyback and burn of their primary asset, AVL coin. This step removed 37% of the circulating supply from the market. Following this announcement, the price of AVL coin saw a 9% surge, reaching $0.15.
Avalon Labs’ Coin Burning Strategy
On September 10, Avalon Labs disclosed that since June, they have repurchased AVL coins from the Bybit exchange using 1.88 million USDT. Each AVL coin was bought at an average price of $0.1347, leading to a total of 13.9 million AVL coins being permanently eliminated from circulation. This effort brings the total burned to 93.9 million coins, corresponding to 37% of the supply.
The company financed the coin burning plan via their monthly protocol revenue. Avalon Labs reinvested these earnings to acquire AVL on Bybit, subsequently transferring them to a burn address at regular intervals.
In the same announcement, Avalon Labs underscored its commitment to expanding in the blockchain-based capital markets sector. Additionally, the first half of the year saw Bybit integrating Avalon’s BTC Lending protocol, bridging centralized and decentralized finance worlds.
Market Impact on AVL Coin Price
Post-burn, AVL coin’s value rose 9% in a day to $0.15. Despite this uptick, it remains approximately 70% below its peak of $0.70 reached in May. The daily trading volume also increased by 9%, exceeding $25 million.
The total circulating AVL coin supply is capped at 1 billion, with around 161 million currently in circulation, representing just 16.6% of the market. More coin unlocks are anticipated in the coming months, potentially affecting the supply dynamics.
AVL coin began trading in the market following the completion of a February AirDrop. It is also known that YZi Labs, backed by Binance, invested in the project in May.
