DEGEN Price Surges After 32.5% Token Burn Announced by Coinbase-Listed Project

Degen (DEGEN), a cryptocurrency listed on Coinbase, announced a strategic token burn initiative that sparked an immediate surge in its price. The DEGEN Foundation, through an official post on its account, revealed plans to explore the phased destruction of 32.5% of the total token supply to address concerns over dilution and inflation. The foundation emphasized that the burn aims to foster long-term sustainability, avoiding large-scale airdrops that could undermine existing holders' equity [1].

The foundation is currently seeking community feedback on whether to proceed with the burn or opt for airdrops instead. A staged approach was proposed, with tokens burned consistently over months to create a "sustainable accumulation" that benefits long-term holders while eliminating the need for future airdrops. This strategy, if implemented, could reshape the token’s economic model and signal a commitment to value retention [1].

Following the announcement, DEGEN’s price experienced a sharp upward trajectory. The move aligns with a broader trend in the crypto market, where projects leverage supply-side adjustments to influence demand dynamics. By reducing circulating supply, the foundation aims to create scarcity, a tactic frequently associated with price appreciation in digital assets [1].

Analysts highlighted the significance of the burn in the context of DEGEN’s listing on Coinbase, a major exchange that enhances liquidity and accessibility for both retail and institutional investors. The platform’s credibility likely amplified the market’s response, as the burn was perceived as a strategic move to solidify the token’s utility and governance framework. This contrasts with speculative "memecoins" that lack clear use cases, positioning DEGEN as a project with tangible long-term goals [1].

The event also reflects broader optimism in the crypto sector, with July 2025 witnessing heightened activity across the market. While DEGEN’s surge was notable, it occurred alongside gains in other tokens, such as Binance Coin and Zora, driven by similar mechanisms like burns and listings [1]. However, DEGEN’s price reaction stood out due to its Coinbase listing, which provided a level of institutional validation and exposure not available on smaller exchanges [1].

Critically, the success of burn-driven strategies depends on a project’s ability to deliver on its roadmap and secure adoption. For DEGEN, the initiative represents a step toward establishing itself as a competitive altcoin, but its long-term viability will hinge on factors beyond supply adjustments, including real-world utility and community engagement [1].

The market’s immediate response underscores the role of community sentiment in crypto projects. By involving holders in the decision-making process—whether to proceed with burns or airdrops—the DEGEN Foundation demonstrates a commitment to decentralization and transparency. This approach fosters trust, a critical factor in attracting and retaining investors in a sector known for volatility [1].

Sources:

[1] Bitcoin – [https://en.bitcoinsistemi.com/surprise-altcoin-listed-on-coinbase-announces-burn-price-instantly-skyrockets/](https://en.bitcoinsistemi.com/surprise-altcoin-listed-on-coinbase-announces-burn-price-instantly-skyrockets/)

[3] Economic Times – [https://m.economictimes.com/crypto-news-today-live-27-jul-2025/liveblog/122927600.cms](https://m.economictimes.com/crypto-news-today-live-27-jul-2025/liveblog/122927600.cms)

[4] Crypto Adventure – [https://cryptoadventure.com/crypto-still-seen-as-risky-among-u-s-investors-despite-ownership-surging-8x-since-2018-survey/](https://cryptoadventure.com/crypto-still-seen-as-risky-among-u-s-investors-despite-ownership-surging-8x-since-2018-survey/)