Avalon Labs Burns 80M AVL Tokens, Reducing Supply

• Lyla Velez
• June 9, 2025

Avalon Labs announced on June 9, 2025, that it has permanently burned 80 million AVL tokens, impacting 44% of the circulating supply.

Avalon Labs’ decision reduces AVL’s supply, potentially increasing scarcity and value.

Impact of AVL Token Burn

Avalon Labs has officially burned 80 million AVL tokens, which accounts for a significant portion of the overall supply. This action was announced on their official X account, marking a notable strategic shift. The tokens were unclaimed allocations from a prior airdrop, worth approximately $16 million. Following the burn, AVL price surged, showing strong market response. Avalon Labs, known for its presence in Bitcoin-backed lending markets, manages AVL, USDa, and BTC-backed products.

Avalon Labs has officially burned 80M $AVL, representing 44% of the circulating supply. These unclaimed airdrop tokens, worth approximately $16 million, have now been permanently removed from circulation.

The permanent removal of these tokens is seen as a move to align incentives with the community, as mentioned in Avalon Labs’ communications. This decision further strengthens the ecosystem, considering the entity’s ongoing enhancements in its capital markets business. Previous large token burns, such as those by Binance and Stellar, have sometimes resulted in price increases, highlighting the potential financial effects of Avalon Labs’ action. In addition, the Avalon Labs burn places focus on the evolving dynamics within crypto, reflecting broader trends in governance and financial strategies.

Avalon Labs’ recent $2 billion credit line indicates strong institutional growth prospects, possibly resulting in expanded market operations. Historical trends suggest similar token burns often result in increased investor interest due to scarcity. With further institutional scale, Avalon Labs could enhance its role in crypto finance, potentially influencing regulatory perspectives and technological shifts driven by tokenomics.