Avalon Labs (AVL) Rallies 18% Following 80M token Burn

Avalon Labs’ native token, AVL, saw a significant surge in market value after the platform conducted a major token burn. According to data from CoinGecko, the asset surged by a notable 18% on the day, before relinquishing some of its gains. At the time of writing, AVL trades at $0.2041, maintaining just 15% of its entire gains. 

With a market capitalization of over $37 million, the asset’s trading volume currently sits at approximately $29 million. This metric represents a significant 107.90% increase from one day ago, signaling a recent rise in market activity. Meanwhile, AVL has gained notable traction over the past week, climbing 7% in the past 7 days. The surge has propelled it to outperform the global crypto market, which is down by 0.70%. 

Avalon Labs Burns 80M Native Token 

In a post on the social media platform X, Avalon Labs confirmed that it burned 80 million AVL tokens. This amounts to a 44% reduction in its circulating supply, valued at around $16 million.

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

For context, token burn is the process of permanently removing a certain number of cryptocurrency tokens from circulation. This is usually done by sending them to a “burn address,” a wallet with no access, making the tokens permanently unrecoverable. This mechanism is designed to reduce supply, potentially increasing scarcity and price over time. 

According to the platform, this deflationary move eliminates unclaimed airdrop tokens, worth approximately $16 million. The project highlighted that the recent development is the beginning of its long-term incentives and is strengthening the foundation of its ecosystem.

“Over the past year, a total of $20M worth of $AVL has been claimed by more than 100,000 Avalonians. We’re proud to have our users, supporters, and believers as key stakeholders in Avalon Labs. As $AVL enters a deflationary cycle, more value will be unlocked, aligning long-term incentives and strengthening the foundation of our ecosystem”, the platform stated. 

Additionally, Avalon Labs thanked its users for helping shape the ecosystem. It also emphasized its ongoing commitment to aligning incentives between the project and its community. The price rally of AVL following the strategic decision to burn 44% of the circulating supply demonstrates strong market validation.

Avalon Labs Partners with KaiaChain for $200K KAIA Token Rewards Campaign

The burn follows several major developments for Avalon Labs. On May 15, the platform started a campaign with KaiaChain to distribute $200,000 worth of KAIA tokens. Participants can earn a share by depositing or borrowing assets on the platform.

Each deposit earns 1X points, while each borrow action earns 3X points, giving borrowers a faster way to climb the leaderboard. According to the platform, the more a user deposits or borrows, the higher their rank and the bigger their reward.

The prize pool is divided into three tiers. The top 100 users will be rewarded with $100,000 worth of KAIA tokens while users who rank 101 to 300 will share $60,000. Then, all other participants will share the remaining $40,000.

Notably, Avalon Labs highlighted that this campaign will end on June 15th. So, interested users have a limited four days to participate, boost their activity, and secure their spot on the leaderboard. 

Founded in 2024, Avalon Labs is focused on building a comprehensive Bitcoin-backed on-chain capital market. Earlier this year, the platform launched its institutional Bitcoin lending product. The offering is designed to unlock liquidity in a scalable, secure, and transparent way. 

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