Avalon Labs Slashes 37% of AVL Supply in Bold Token Burn Move

Avalon Labs just torched 37% of its circulating tokens—sending shockwaves through the AVL ecosystem.

Supply Shock Strategy

The move drastically reduces available AVL tokens, a classic deflationary play aimed at boosting scarcity. Token burns aren’t new, but wiping over a third of the supply in one go? That’s a statement.

Market Mechanics in Motion

Supply cuts typically trigger short-term price pumps—traders love a good scarcity narrative. But let’s be real: in crypto, even a “fundamental” move can sometimes feel like performance art for speculators. Still, burning tokens beats printing them—unless you’re a central bank, of course.

Long-Term Play or Short-Term Hype?

Will it work? Maybe. Burns can support token value if demand holds. But if no one’s using the chain, even a tiny supply won’t save it. For now, Avalon’s playing with fire—literally.

Avalon Labs’ AVL price analysis

Avalon Labs’ AVL token experienced a sharp breakout on September 10, following the announcement that the project has burned 37% of its circulating supply. At press time, the token has risen by 7.6% in the past 24 hours. It is currently trading at a price of $0.147.

Prior to the news, AVL had been consolidating in a tight range between $0.125 to $0.135, reflecting muted investor activity. The burn announcement sparked a surge in buying pressure, pushing the token as high as $0.155, its strongest hourly rally in weeks.

This type of MOVE highlights how aggressive supply reductions can trigger immediate price reactions, as traders anticipate increased scarcity after the protocol started burning tokens.

However, not long after the spike AVL retracted back to the $0.145–$0.146 zone, showing that some holders took quick profits. The pullback formed a small flag-like consolidation, a technical pattern that often signals continuation if buyers return.

Supporting this outlook, the RSI indicator touched 69.59, brushing against overbought territory before easing lower. While this suggests AVL was temporarily overheated, it also reflects strong momentum that could carry further if buying volume sustains.

By permanently removing over a third of the circulating supply, Avalon Labs signals its commitment to value preservation and long-term scarcity. This supply shock creates a bullish narrative, but the sustainability of the rally will depend on whether demand for AVL’s ecosystem utility is able to grow after the token burn.