OKX burns massive amount of OKB, but these concerns still remain

• OKX bought and burned 5,183,976.43 OKB from the secondary market.
• OKB witnessed a massive price surge earlier, but the trend changed in the past week.

OKX recently published a report highlighting the status of its buy-back and burn OKB program. This particular round was held between 1 December 2020 and 28 February 2023.

Read OKB’s Price Prediction 2023-24

To clear the air, the OKB Buy-Back & Burn program was an initiative by OKX to buy back OKB tokens from the original supply of 300,000,000 OKB every three months, according to the market and operating performance. After the acquisition of the tokens, they are meant to be burned.

The program was launched back on 4 May 2019, and since then there have been 19 rounds. In the latest 19th round, OKX revealed that it bought and burned 5,183,976.43 tokens from the secondary market, which are worth over $177 million.

Source: OKX

OKB benefited hugely during the latest round

A look at OKB’s price graph from 1 December 2022 to 28 February 2023 revealed that its price doubled during that period. The value increased from $21 to around $57 during mid-February, which was commendable. Though the burn could have played a role in this surge, the bullish market of 2023 also contributed largely.

Source: Santiment

Apart from the price hike, the token did not seem to have been positively affected as its network growth declined. The metrics indicated that fewer new addresses were used to transfer the token. Despite the price hike, OKB’s popularity also fell, as suggested by the social volume metric. 

Concerns emerge about the token

It was interesting to note OKX has been witnessing a growth in its network value since the start of 2023. DeFiLlama’s data revealed that OKX’s TVL gained upward momentum and increased considerably over the last three months. 

Source: DeFiLlama

However, things were not the same for OKB. Though the past few months have been in the bull’s favor, allowing OKB to drastically increase its value, the present scenario is different. CoinMarketCap’s data revealed that the token’s price declined by over 16% in the last seven days.

At press time, it was trading at $42.10, with a market capitalization of over $2.5 billion.

Realistic or not, here’s OKB market cap in BTC’s terms

It was surprising to see that despite the massive price drop, weighted sentiment spiked, suggesting that investors were confident in the token. The same was true for the MVRV Ratio, which showed signs of recovery while OKB’s price plummeted.

Investors’ confidence in the token was yet again proven by its supply held by top addresses, which has increased of late. 

Source: Santiment