OKX Burns $7.6 Billion in OKB Tokens, Supply Cut by 50%

OKX, a major global cryptocurrency exchange, has permanently destroyed 65.26 million OKB tokens valued at $7.6 billion, reducing the circulating supply by more than half [1]. This event marks one of the largest single-burn operations in the history of exchange tokens and was executed as part of OKX’s buyback and burn program. The burn capped the total OKB supply at 21 million tokens, aligning it with Bitcoin’s hard cap model [1].

The immediate market reaction was significant. OKB’s price surged over 200%, reaching a peak of $142 before settling around $102 in the hours following the burn. Trading volume exploded by 13,000%, reaching $723 million as investors rushed to capitalize on the supply shock [1]. The turnover ratio—a metric that measures how much of a token’s supply is traded within a timeframe—jumped from 0.03 to 0.093, indicating heightened speculative activity and strategic positioning among traders [1].

The move reflects a deflationary strategy that has historically driven positive responses in the market for other exchange tokens. For instance, Binance’s BNB token has seen short-term price rallies following its quarterly burn events. By reducing supply while maintaining or increasing demand, OKX is leveraging basic economic principles to create upward pressure on OKB’s price [1].

The burn also aligns with OKX’s broader strategic shift toward promoting its X Layer blockchain, where OKB serves as the native token. The exchange has outlined plans to enhance transaction speeds and reduce gas fees on X Layer to improve user experience and drive network activity. Additionally, OKX announced the phased retirement of Ethereum-based OKB in favor of X Layer versions, allowing current holders to redeem their tokens for the new variant [1].

The success of this transition will be critical for OKB’s long-term value. While the burn has generated immediate price momentum, the token’s ability to maintain elevated levels depends on increased usage of X Layer and the creation of organic demand beyond the deflationary impact [1].

Token burns typically involve sending cryptocurrency to addresses that are permanently inaccessible, effectively removing the tokens from circulation. This process is irreversible and directly reduces the supply available for trading or use. The long-term success of OKX’s strategy will hinge on the exchange’s ability to sustain demand for OKB through enhanced utility and adoption [1].

OKX’s $7.6 billion burn represents a bold move in managing token supply and reinforcing investor confidence. The market has responded positively, with OKB experiencing a sharp price and volume surge. While the long-term effects remain to be seen, the event underscores the growing trend of deflationary token management among major crypto platforms [1].

Source:

[1] OKB Token Price Surges 200% as Supply Slashed by 50% – CoinDesk, [https://www.coindesk.com/business/2025/08/13/okx-slashes-okb-token-supply-by-50-with-usd7-6b-burn-price-surges](https://www.coindesk.com/business/2025/08/13/okx-slashes-okb-token-supply-by-50-with-usd7-6b-burn-price-surges)