Avalon Labs has conducted a large-scale burn of 80 million AVL tokens, which constitutes 44% of the total circulating supply of the asset. According to the company, the unclaimed tokens from the airdrop, which have now been removed from the market, were valued at approximately $16 million.
This is reported by Business • Media
Deflationary Model and Growing Demand
Following the burn, the asset has officially entered a deflationary phase, which, according to the developers at Avalon Labs, is expected to positively impact its value and the sustainability of the ecosystem. The company emphasizes that the deflationary strategy will help better align incentives among market participants and increase the attractiveness of AVL tokens for users and potential investors.
According to CoinMarketCap, following the news of the token burn, the daily trading volume of AVL doubled, and the asset’s value reached nearly $0.21. Throughout 2024, over 100,000 Avalon users, referred to as Avalonians by the company, received tokens worth $20 million. These participants, as highlighted by Avalon Labs, have become key stakeholders of the platform, shaping its long-term value.
“This is not the end, but the beginning. Today we are launching a new phase: business expansion. Expect more. Avalon is moving forward,” reads the official project statement.
Development and Plans of Avalon Labs
In February 2025, Avalon Labs announced its intention to consider filing an application with the U.S. Securities and Exchange Commission (SEC) to launch the industry’s first Bitcoin-backed debt obligation ETF. The company notes that an increasing number of financial organizations are integrating Bitcoin into their portfolios or creating products based on it, so Avalon Labs plans to collaborate with law firms to prepare the relevant application.
Additionally, in May, Avalon Labs secured investment from YZi Labs, although the amount of the deal was not disclosed. The project continues to actively develop, expanding its influence in the cryptocurrency and financial instruments market.
