Covalent Burns 900,000 CXT Tokens, Supporting Long-Term Value

The blockchain data provider Covalent (CXT) surprised many by announcing the buyback and burning of 900,000 CXT tokens in August, raising the total buyback amount over the past year to 7.7 million CXT. This action represents 0.77% of the total supply and is a strategic move aimed at reducing inflation, reinforcing investor confidence in the long-term value of the token.

All CXT tokens bought back will be permanently burned, removing them from circulation and creating a deflationary structure for Covalent.

Covalent's revenue is bolstered by integration with over 150 blockchains, and CXT tokens are listed on Revolut in compliance with MiCA, alongside significant product upgrades like HyperEVM in the GoldRush API suite.

The company asserts that the revenue cycle is accelerating and is committed to continuing daily token buybacks to maintain the deflationary mechanism.

Although the price of CXT tokens is currently down by up to 82% compared to the peak set 9 months ago, with a market capitalization of around 28 million USD, the buyback and burn move indicates that Covalent is working to build trust and position the project for sustainable long-term growth.