OKX slashes OKB token supply by 50%, price surges, ETH transaction volume climbs on price rally.

OKX slashes OKB token supply by 50%, price surges, ETH transaction volume climbs on price rally.

OKX, a leading cryptocurrency exchange, has made a significant move to overhaul its blockchain ecosystem and tokenomics model, leading to a substantial price surge for its native token, OKB. On Wednesday, OKX announced and executed a one-time burn of 65.26 million OKB tokens, slashing the total supply by over 50% [1]. This move permanently fixed the maximum OKB supply at 21 million tokens, aligning with Bitcoin's fixed supply.

The burn was executed from OKX's reserves and represents one of the largest deflationary events in the history of exchange tokens. The effect of the burn was instantaneous, as the price of OKB soared from a daily low of $46 to as high as $135.32, marking a 128% gain on the day [1]. The token had settled at $100.40 at press time, reflecting a 128% gain over the past 24 hours [2].

As part of the update, OKX plans to upgrade the X Layer, its zkEVM-based public blockchain built with Polygon, to build it into a leading public chain with a dedicated focus on DeFi, payments, and real-world asset (RWA) applications [1]. The PP upgrade integrates the latest Polygon CDK technology, increasing transaction throughput to 5,000 TPS, reducing gas fees to negligible levels, and improving Ethereum compatibility for developers [1].

The burn strategy mirrors that of BNB, the token associated with rival exchange Binance, which carries out quarterly burns that often herald short-term price upsurges [1]. OKX will phase out OKTChain due to overlapping functionality as part of the overhaul. Trading of its native OKT token will cease on August 13, 2025, followed by automatic conversion to OKB based on an exchange rate determined by average closing prices between July 14 and Aug. 12, 2025 [1]. OKX said the chain will remain operational until January 1, 2026, allowing users to deposit remaining tokens for conversion [1].

The price rally and supply cut have also driven increased trading activity and ETH transaction volume. OKB's turnover ratio jumped from 0.03 to 0.093, signaling heightened speculative and strategic positioning [2]. The success of OKX's broader ecosystem strategy will be crucial in determining whether the rally can be sustained.

References:
[1] https://zycrypto.com/okb-token-price-rockets-128-after-7-6b-burn-as-okx-caps-supply-at-symbolic-21-million/
[2] https://coincodex.com/article/71429/okb-token-price-soars-187-after-massive-token-burn-and-tokenomics-overhaul/