Bitcoin’s Silver Spoon: Avalon Labs Burns $16M of AVL – Will Price Smile or Frown?

In a gesture of financial flair most dramatic, Avalon Labs has incinerated a staggering 80 million AVL tokens—oh, the fiery poetry of deflation! — reducing the circulating supply by a hefty 44%. Truly, a move worthy of the most theatrical of monetary tragedies.

Announced on the mystical X, on June 9—because nothing says “trust me” like a social media blast—the tokens, worth a princely $16 million, were mostly unclaimed airdrops from some March 2024 extravaganza. Avalon, ever the enfant terrible of finance, calls this fiery act a “deflationary cycle,” as if inflation had ever been so insipid without a dash of drama.

Avalon Labs burning AVL tokens like a true artist of finance

Avalon Labs has officially burned 80M $AVL, representing 44% of the circulating supply.

These unclaimed airdrop tokens, worth approximately $16 million, have now been eternally banished from the realm of liquidity. Over the past year, a cavalcade of over 100,000 users claimed $20 million worth of AVL—a testament to mankind’s unquenchable thirst for free tokens, or perhaps just a really good airdrop.

— Avalon Labs 🎩🔮 (@avalonfinance_) June 9, 2025

Apparently, in the grand dance of digital riches, over 100,000 eager souls have partaken in the AVL feast, claiming their share of the $20 million bounty. Avalon, ever the gracious host, thanks its community for helping shape what it hopes will be a “deflationary” romance. Because nothing says “long-term incentives” like torching part of your supply.

Market responded with all the subtlety of a fireworks display: AVL swooped over 18% after the announcement and took the crown as the top futures buy on Bybit—one might say, the crypto equivalent of a standing ovation.

Avalon Labs—never content with mere petty cash—boasts of building Bitcoin-backed on-chain markets, disbursing over $1.2 billion in BTC-backed loans. To outdo itself, it recently secured a $2 billion credit line from Asian conglomerates—because why not borrow a galaxy of trust?

Avalon’s Bitcoin-backed stablecoin USDa

Not stopping at mere loans, Avalon introduced USDa, the first Bitcoin-backed stablecoin—think of it as “liquidity without sale,” a miracle that even Houdini would envy. Its CeDeFi protocol offers yield-generating savings, because who doesn’t trust a platform that promises to turn your Bitcoin into more Bitcoin, and perhaps a bit of Tether too.

Depositors can stake FBTC, a token as faithful as a puppy, and borrow USDT at fixed rates, deploying funds into high-yield adventures via Ethena Labs. Operating across a menagerie of 20+ blockchains and 50+ lending markets, Avalon’s total value locked surpasses a billion, making even bankers blush with envy.

The fiery spectacle of this bold burn follows recent coups—on May 26, YZi Labs (once Binance Labs) threw some undisclosed investment Avalon’s way, strengthening its institutional pedestal. Earlier, in February, Avalon flirted with the idea of a Bitcoin-backed public debt fund, under SEC watch—because what’s more charming than traditional finance embracing the wild crypto frontier?

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2025-06-09 11:09