OKX Ignites Crypto Markets: $26B OKB Burn and OKTChain Shutdown Shake Industry

OKX just dropped a Molotov cocktail on the crypto space—incinerating $26 billion in OKB tokens and pulling the plug on OKTChain. Talk about controlled chaos.

The burn heard 'round the blockchain

That $26B bonfire wasn't just for show. While traditional finance clings to fractional reserve systems, OKX just demonstrated crypto's ultimate flex: verifiable scarcity at scale. The move instantly tightens OKB's circulating supply—basic economics says that's rocket fuel for token valuation.

Chain reaction

Killing OKTChain wasn't some panicked exit. This reads like surgical precision—axing redundant infrastructure to consolidate liquidity. Remember when exchanges hoarded chains like Beanie Babies? 2025's winners play lean.

Wall Street's watching through clenched teeth as crypto exchanges outmaneuver legacy systems with brutal efficiency. Another day, another decentralized power play—while bankers still can't agree on SWIFT upgrades.

OKX is decommissioning its OKT chain

OKX is winding down its troubled OKTChain, with operations set to continue until Jan. 1, 2026. On Wednesday, the exchange halted OKT trading on the platform as part of its overhaul, canceled pending orders, and executed a burn of roughly $7.6 billion worth of tokens.

The burn resulted in the immediate price surge of the OKB token. The token spiked to $142 from $46 before falling to about $96 later. It also triggered a 13,000% jump in the asset’s trading volume, pushing it to $723 million amid a rush to exploit the supply squeeze. Currently, the token has an onchain market cap of about $2 billion.

Hasu, Flashbots Strategy Leader, noted that traders often misjudge circulating supply and that rapid supply contractions can fuel sharp, short-term rallies. OKX’s move echoes Binance’s BNB quarterly burns, which have historically driven price spikes.

OKX is updating its X Layer Network 

In 2023, OKX debuted its zkEVM-driven public network X LAYER in partnership with Polygon. Now the platforms are moving to upgrade the X Layer into a public network, centered on DeFi, payments, and real-world asset (RWA) use cases.

On August 5, courtesy of Polygon, the X Layer completed the “PP upgrade,” fully integrating the latest iteration of Polygon CDK (formerly known as zkEVM). The upgrade also pushed transactions per second to 5,000 and cut down on gas costs.

The exchange also integrated its OKX Wallet with the X Layer network. It also enabled instant, gasless withdrawals and transfers of USDT and other major cryptocurrencies on the X Layer. The X Layer will also act as OKX Pay’s default public network. 

However, the substantial overlap between the X Layer’s new features and the OKT chain necessitated the exchange to start dropping maintenance and support for OKTChain, which explains the recent OKB token burns. 

Overall, the ethereum L1 OKB is set for gradual discontinuation. Thus, holders have been advised to transfer their OKB to OKX Exchange and execute a one-click swap via “Withdraw to X Layer,” as future Ethereum withdrawals will not be supported.

Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites