Avalon Finance Burns 44% Token Supply, AVL Price Jumps 16%

Avalon Finance, a Bitcoin-based CeDeFi platform, has burned 80 million AVL tokens, representing 44% of its circulating supply. The burning included unclaimed airdropped tokens worth approximately $16 million. Following the move, the AVL token price jumped 16%. The token burning is a standard approach to control token inflation and is expected to strengthen the platform's ecosystem.

Avalon Labs, a prominent financial technology company building Bitcoin-backed on-chain capital markets, has initiated a significant token burn event. On June 9, the company announced the permanent removal of 80 million AVL tokens from circulation, representing approximately 44% of the total supply. The tokens, valued at an estimated $16 million, were mostly unclaimed airdrop allocations from a March 2024 campaign [1].

The token burn is part of Avalon Labs' strategy to reduce supply and potentially increase scarcity and price over time. This move aligns with the company's long-term incentives and is designed to strengthen the platform's ecosystem. The market responded swiftly to the announcement, with the AVL token price surging by over 16% shortly after the news broke [1].

The token burn follows several major developments for Avalon Labs. In May 2025, YZi Labs, formerly Binance Labs, announced an undisclosed investment in Avalon, boosting the project’s institutional backing [1]. Additionally, the firm has been exploring a Bitcoin-backed public debt fund under Securities and Exchange Commission oversight, which could bring more traditional investors into the crypto credit market [1].

Avalon Labs is known for its innovative financial products, including USDa, the first Bitcoin-backed stablecoin, and its CeDeFi protocol, which offers yield-generating savings products. The company operates across 20+ public blockchains and 50+ isolated lending markets, with total value locked exceeding $1.1 billion as of June 2025 [1].

References:
[1] https://crypto.news/avalon-labs-burns-avl-slashing-circulating-supply-2025/
[2] https://themarketperiodical.com/2025/06/04/galaxy-digital-buys-137k-eth-as-blackrock-etf-tops-4b-holdings/