In a sensational shift that rocked the crypto markets, Avalon Labs’ home token, $AVL, blasted off and shot up 21% following the declaration of a colossal token melt.
The blockchain-borne financial services platform assured us that it had eternally deleted 80 million $AVL tokens from nature’s circulating supply, and the crypto community seems to have taken this as a sign that confidence and interest in the project has renewed. The whole thing looks like savagely good optics for Avalon.
Avalon Labs has announced the burn of 80 million AVL tokens, representing approximately 44% of the circulating supply. The burned tokens primarily came from unclaimed allocations in an earlier airdrop campaign. Launched in March 2024, the campaign saw a total of $20 million worth…
— Wu Blockchain (@WuBlockchain) June 9, 2025
The incineration, which affects a jaw-dropping 44% of the total circulating supply of $AVL, was mainly made up of unclaimed tokens from a past airdrop. At the time of the incineration, these tokens were worth about 16 million dollars and were obliterated, signaling a clear move toward deflationary tokenomics in the Avalon ecosystem.
Token Burn Signals a Deflationary Pivot
Avalon Labs’ recent token burn is something more than a mere technical update; it’s a bold, strategic move that positions us for a deflationary future. Token burns reduce the total supply of a cryptocurrency, often increasing its scarcity, which, when there is still demand for the asset, increases its price.
Avalon Labs has officially burned 80M $AVL, representing 44% of the circulating supply.
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 has been claimed by… pic.twitter.com/GXMWKpmbNF
— Avalon Labs 🎩🔮 (@avalonfinance_) June 9, 2025
Avalon Labs has hugely curtailed the supply of the token, with 80 million tokens now permanently excised from circulation. This event marks the start of a deflationary cycle for $AVL—one that is supposed to deliver long-term, unlocked value for holders and even better incentive alignment across the ecosystem. The market seemed to like the move, with the token popping 21% almost immediately after the announcement.
The burn also serves to clean up the token’s ledger by eliminating dormant or unclaimed tokens, many of which were leftover from Avalon’s initial airdrop campaign.
Avalon Labs: Bridging Bitcoin with Modern Finance
Avalon Labs sees itself as something quite different: a next-generation financial services platform, built on the Bitcoin network.
Whereas Ethereum and other blockchains often grab the headlines in the growing world of decentralized finance (DeFi), Avalon is carving out a unique position, a “niche” in its own words, in the development of a Bitcoin-based financial services platform.
Of late, Avalon Labs has finished a round of strategic funding, and for this, it was YZi Labs who took the lead. Avalon now boasts not only a substantially beefed-up balance sheet but also significant momentum on the operational and developmental fronts, too. It hopes to use its new cash to widen its user inroad and to go to market with several Bitcoin-native financial products.
The firm insists that what it’s really after in all these machinations is the construction of a robust ecosystem where those who hold the Avalon token are rewarded for something much better than what 2018 promised: long-term participation instead of short-term flipping.
The recent Avalon burn, in effect, updates the tokenomics so the remainders are no longer dead weight.
Investor Sentiment Turns Bullish
Since the token was burned, the feeling in the $AVL around has changed. The $AVL isn’t burnt, sentiment in the crypto community is definitely good. What is Avalon Labs doing? They are taking bold action with the $AVL. Why is that? Because they are doing what many other projects in the space are not doing. They are combating oversupply and inflationary pressures, and they are doing it in the most straightforward way imaginable.
Avalon Labs is at a key moment, and so is the cryptocurrency industry. This industry faces rising scrutiny over the real-world usefulness of its tokens and the viability of its growth models. With the appearance of mechanics that promise a declining supply of its tokens, and the backing of some serious institutional investors like YZi Labs, Avalon seems well set to ride out the market’s ups and downs and establish itself as a credible player. Yet, at the same time, the scrutiny seems likely to increase.
The impact of this burn may go beyond merely moving the price. It’s a signal to both existing and would-be investors that Avalon Labs isn’t kidding around. They’ve got a serious, unfussy, value-driven program that lays down a path for long-term growth.
Once this week’s action-packed market reshuffle settles, one thing stands out: Avalon Labs’ $AVL token is no longer just an obscure under-the-radar play.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/avl-token-soars-21-after-major-burn-avalon-labs-reshapes-its-ecosystem/