Avalon Labs’ governance token, AVL, rallied over 20% in the last 24 hours after an event that reignited investor confidence. The project’s team executed a major token burn, permanently destroying 80 million tokens.
$16M Token Burn Fuels AVL Jump
Recall that Avalon Labs launched its airdrop in February 2025, dedicating 200 million AVL tokens to early adopters and active community members. Eligible participants included holders of USDa, users of Avalon’s DeFi and CeDeFi services, IDO whitelist holders, and those who completed social or platform-based tasks.
As is common with several claimable airdrops, some users did not claim their AVL tokens. In a recent X post, the team noted that the burnt tokens were ones left unclaimed in the initial airdrop. The token burn represents approximately 44% of the AVL circulating supply, valued at around $16 million.
The Avalon Labs team claims the reduction in AVL’s circulating supply signals a clear shift into a deflationary cycle. It believes the move will unlock value, strengthen long-term incentives, and empower holders to share more deeply in the platform’s success. The team emphasized that the burn is “the beginning” of a new strategic phase centered on business expansion.
Interestingly, with significantly fewer tokens circulating, investors are now betting that each AVL holds greater value. Following the announcement, the asset jumped from $0.18 to $0.22, suggesting that market participants view the burn as a price catalyst. Nonetheless, at press time, the token price has corrected to $0.20, representing a 19% increase in the past 24 hours.
User Interest in AVL Soars
AVL has been riding a wave of earlier momentum driven by major exchange listings and ecosystem expansion efforts. In March, the token rocketed over 80% on its Bithumb listing in South Korea. It is also gaining traction from its Bitcoin-backed lending products, USDa stablecoin, and plans for a regulated debt fund.
Additionally, YZi Labs (formerly Binance Labs) recently announced a strategic investment in Avalon Labs. The capital injection aims to boost Avalon Labs’ regulatory compliance initiatives, indicating institutional confidence in the token.
Meanwhile, burn events are not new in the crypto industry. For example, Binance has conducted quarterly BNB burns since 2017. In 2021, it introduced an auto-burn system routinely removing over a million BNB per quarter. Alpaca Finance also launched a weekly buyback-and-burn program for its ALPACA token to maintain deflation.
