Ronin Treasury Announces RON Buyback, Reduces Market Supply

Ronin announced a RON token buyback commencing September 29, converting over $5 million in ETH and USDC holdings into RON onchain, affecting 1.3% of its circulating supply.

This strategic move aims to expand Ronin’s ecosystem and strengthen its treasury holdings, positioning for growth as a Layer 2 solution.

Ronin Plans $5M Buyback to Reduce RON Supply

Ronin Treasury has initiated a buyback process to exchange all of its ETH (890 units) and USDC (650,000 units) into RON over a month starting September 29. This move is part of a larger strategy by Ronin’s leadership to reduce RON’s market circulation and increase strategic reserves.

Market players are observing the move with interest, noting potential impacts on Ethereum and USDC liquidity given the treasury’s full conversion to RON. Jeffrey Zirlin emphasized transparency, ensuring the market that this operation would not lead to RON outflows. The broader reaction has been modestly positive, with community sentiments focused on potential gains in RON valuation due to reduced availability.

Jeffrey “Jihoz” Zirlin, a co-founder at Sky Mavis, underlines the importance of this realignment in preparation for Ronin’s expanded Layer 2 role.

Expert Insights and Market Expectations Amid Buyback

Did you know? Ronin’s buyback of 1.3% of its circulating supply mirrors prior protocol treasury actions, including MakerDAO’s MKR burns and Binance’s BNB reductions. These maneuvers often signal confidence and have historically led to short-term token price stabilization or appreciation.

Ongoing economic activities for Ronin include a current market price of $0.52 per RON, with a market cap of approximately USD 360.42 million and a trading volume at USD 11.56 million, representing a 237.27% increase in 24 hours according to Ronin price prediction with technical analysis. Despite minor fluctuations, RON saw a 25.38% price increase over the last 90 days, marking robust longer-term growth.

Coincu research suggests the Ronin buyback might establish a precedent in protocol-level economic strategies, potentially influencing regulatory actions if more treasuries follow suit. Given RON’s current market conditions, involving a 0.01% market dominance and circulating supply reduction, experts project a positive outlook for supply-chain transformations that may trigger future ecological and financial resource reallocation. Despite minor fluctuations, RON saw a 25.38% price increase over the last 90 days, marking robust longer-term growth.