{"id":2480,"date":"2025-06-09T08:12:00","date_gmt":"2025-06-09T08:12:00","guid":{"rendered":"https:\/\/bitunikey.com\/news\/bitcoin-capital-markets-platform-avalon-labs-burns-80m-avl-slashing-circulating-supply-by-44\/"},"modified":"2025-06-09T08:12:04","modified_gmt":"2025-06-09T08:12:04","slug":"bitcoin-capital-markets-platform-avalon-labs-burns-80m-avl-slashing-circulating-supply-by-44","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/bitcoin-capital-markets-platform-avalon-labs-burns-80m-avl-slashing-circulating-supply-by-44\/","title":{"rendered":"Bitcoin capital markets platform Avalon Labs burns 80M AVL, slashing circulating supply by 44%"},"content":{"rendered":"

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Avalon Labs has burned 80 million AVL tokens, permanently removing them from circulation in a move that reduces the circulating supply by roughly 44%.<\/p>\n

Announced on X on June 9, the tokens, worth an estimated $16 million, were mostly unclaimed airdrop allocations from a March 2024 campaign. Avalon framed the burn as the start of a \u201cdeflationary cycle\u201d that aligns with long-term incentives.<\/p>\n

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Avalon Labs has officially burned 80M $AVL<\/a>, representing 44% of the circulating supply. <\/p>\n

These unclaimed airdrop tokens, worth approximately $16 million, have now been permanently removed from circulation. Over the past year, a total of $20M worth of $AVL<\/a> has been claimed by\u2026 pic.twitter.com\/GXMWKpmbNF<\/a><\/p>\n

\u2014 Avalon Labs \ud83c\udfa9\ud83d\udd2e (@avalonfinance_) June 9, 2025<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Over the past year, more than 100,000 users have claimed $20 million in AVL through the airdrop. The company thanked its users for helping shape the ecosystem and said it remains focused on aligning incentives between the project and its community.\u00a0<\/p>\n

Token burns are designed to reduce supply, potentially increasing scarcity and price over time. In this case, market response was swift. AVL surged over 18% shortly after the announcement and ranked #1 in futures buys on Bybit.\u00a0<\/p>\n

Avalon Labs is a financial technology company that is building Bitcoin-backed on-chain capital markets. The platform has already disbursed more than $1.2 billion in overcollateralized BTC-backed loans. To extend this model to institutional clients, it recently obtained a $2 billion credit line from prominent Asian conglomerates.<\/p>\n

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In addition to lending, Avalon created USDa, the first Bitcoin-backed stablecoin, allowing users to unlock liquidity without selling their Bitcoin (BTC). Through its CeDeFi protocol, Avalon also offers yield-generating savings products. <\/p>\n

Users can deposit FBTC, a 1:1 Bitcoin-pegged asset, and borrow Tether (USDT) at fixed rates, funds that are deployed into high-yield strategies via platforms like Ethena Labs (ENA). Avalon operates across 20+ public blockchains and 50+ isolated lending markets, with total value locked exceeding $1.1 billion, as per DefiLlama data<\/a>. <\/p>\n

The burn follows several major developments for Avalon Labs. On May 26, YZi Labs, formerly Binance Labs, announced an undisclosed investment in Avalon, boosting the project\u2019s institutional backing.<\/p>\n

And in February, the firm revealed it was exploring a Bitcoin-backed public debt fund under Securities and Exchange Commission oversight, a step that could bring more traditional investors into the crypto credit market.<\/p>\n

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