- Avalon Labs has burned 80 million AVL tokens and reduced the total supply by almost half to boost the token’s value.
- AVL’s price rose by 18% right after the burn, and the coin quickly got the highest volume on Bybit’s futures market.
- With a credit line and financial support from institutions, the company is developing more financial products and DeFi services.
A top innovator in Bitcoin-built financial solutions, Avalon Labs, has burned a total of 80 million AVL tokens, taking these from circulation. This step marked a big move in the company’s plan to decrease the available supply of the token and motivate its community.
The main account of Avalon Finance on X posted the update. Roughly $16 million worth of burned tokens was mostly made up of tokens that were part of an airdrop campaign but not yet claimed.
In a post on X, Avalon Labs revealed that the burn marks the first step in a strategic plan to make the value of the token appreciate. As soon as the update was announced, AVL’s price went up a noticeable 18% on the market, and also topped the list in futures trading volume on Bybit.
Source: X (@avalonfinance_)
Avalon Labs Saw More Than $1.1 Billion TVL After The Airdrop Event
After the airdrop event, over 100,000 users collected $20 million in AVL tokens. In addition, the company recognized the community for contributing to its DeFi platform and promised to always focus its project goals on what users expect.
The firm provides financial products based on Bitcoin by making use of blockchain technology. More than $1.2 billion worth of Bitcoin-backed loans have been processed, making it possible for users to get liquidity without any asset sales.
After the company launched USDA, the first Bitcoin-backed stablecoin, users could manage their funds smoothly as well as hold Bitcoin. By applying the CeDeFi protocol, users can give up FBTC for fixed-rate USDT borrowing, and these USDT assets are used with Ethena Labs and other platforms for high-yield strategies.
Avalon Labs’ total value locked (TVL) has reached $1.1 billion on more than 20 public blockchains and in over 50 private lending markets, based on information from DefiLlama.
Avalon Labs Enters a New Phase of Expansion
Burning the token is the next important step for Avalon Labs after reaching important milestones. In May 2025, the business obtained institutional support from YZi Labs to boost its financial status. Last February, Avalon Labs revealed intentions to introduce an SEC-backed debt fund in Bitcoin, expecting this will attract traditional investors to crypto credits.
Also, the company got a $2 billion credit line from famous Asian conglomerates to help it expand its lending to institutions. The company’s strategic burn proves that its goal is to continue adding value to the ecosystem without compromising the stability of its financial services.
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