Avalon Labs Ignites Deflationary Cycle with Massive Token Burn! 🔥🚀
Bitcoin capital markets platform Avalon Labs has made a significant move, permanently removing 80 million AVL tokens from circulation. This massive burn slashes the circulating supply by approximately 44% and is valued at an estimated $16 million! 💰
Announced on June 9, 2025, on X, most of the tokens were unclaimed allocations from a March 2024 airdrop campaign. Avalon Labs frames this bold action as the beginning of a "deflationary cycle," aiming to align with long-term incentives for its community. Over 100,000 users have claimed $20 million in AVL through the airdrop over the past year, and Avalon Labs extended its gratitude to users for helping shape their ecosystem. 🙏
Token burns are a strategic move designed to reduce supply, which can potentially increase scarcity and price over time. The market's reaction was swift and positive: AVL surged over 18% shortly after the announcement and ranked #1 in futures buys on Bybit! 📈
Avalon Labs is at the forefront of financial technology, building Bitcoin-backed on-chain capital markets. The platform has already disbursed over $1.2 billion in overcollateralized BTC-backed loans and recently secured a hefty $2 billion credit line from prominent Asian conglomerates to expand its model to institutional clients. 🏦
Beyond lending, Avalon Labs created USDa, the first Bitcoin-backed stablecoin, allowing users to unlock liquidity from their Bitcoin without selling it. Through its CeDeFi protocol, they also offer yield-generating savings products. Users can deposit FBTC (a 1:1 Bitcoin-pegged asset) and borrow Tether at fixed rates, deploying these funds into high-yield strategies via platforms like Ethena Labs. With operations across 20+ public blockchains and 50+ isolated lending markets, Avalon boasts a total value locked exceeding $1.1 billion, according to DefiLlama data. 🌐🔒
This significant token burn follows several major developments for Avalon Labs, including an undisclosed investment from YZi Labs (formerly Binance Labs) on May 26, boosting its institutional backing. In February, the firm also revealed it was exploring a Bitcoin-backed public debt fund under Securities and Exchange Commission oversight, a step that could attract more traditional investors to the crypto credit market. 🌟
What do you think of this big move by Avalon Labs? Share your thoughts! 👇
#AvalonLabs $BTC #BTC #BOME🔥🔥🔥
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