In the crypto world, token burns are often celebrated as a deflationary gesture with bullish potential. However, in the case of BitTorrent Token, the story seems different: more than 58% of the supply has been burned, and yet, the price remains flat or even falling. Why?
This analysis demystifies the impact of burns and shows what factors actually drive the value of a token.
📉 Burning tokens ≠ Price increase
Token burning reduces the total supply, yes, but that does not guarantee a price increase unless it is accompanied by something key: demand.
Simple example:
Imagine a store with 1 million unsold t-shirts. Burning 500,000 t-shirts won't make the remaining ones worth more unless there are people interested in buying them. The same goes for tokens.
🧩 The real reasons why BTTC is not taking off
1. Lack of real demand
Despite the burns, BTTC has no massive practical use. There is no app, game, or platform where it is essential to use it. As long as holders only speculate and there are no real users, the price will remain stagnant.
2. Still immense supply
Even after the burns, there are hundreds of billions of BTTC tokens in circulation. This creates constant selling pressure and reduces the real deflationary effect.
3. No strong narrative or hype
Unlike other tokens that rise due to narrative (like 'the people's meme coin' or 'the Ethereum killer'), BTTC does not have a story that inspires investors or campaigns that drive its adoption.
4. There is no clear integration with BitTorrent
Many expect BTTC to play a central role in the BitTorrent ecosystem, but there is still no integrated utility that makes it indispensable for the millions of users on the network.
💡 What would actually raise the price?
If BitTorrent wants BTTC to rise sustainably, it needs more than just burns. Some concrete ideas:
Direct integration with high-traffic streaming, downloading, or Web3 platforms.
Incentive programs with staking, rewards, or community participation.
Usage in DeFi platforms, payments, or games.
Strategic partnerships or relaunches with clear storytelling.
✅ Conclusion: burns are not enough
Burning tokens is an interesting tool, but it is not the main solution. The true value of a crypto asset comes from its utility, adoption, and narrative.
If there isn't a compelling reason for people to buy, use, or accumulate BTTC, then even if they burn 99% of the tokens, we won't see a substantial change in price.