- Avalon Labs burns 93.9M AVL tokens, funded by protocol revenue, cutting 37% of supply.
- AVL price rises 9% to $0.15 as trading volume exceeds $25 million following burn.
Avalon Labs announced the closure of another token buyback and burn program, whereby 13.95 million AVL tokens were removed from the circulating supply. These tokens were bought at an average price of $0.1347, amounting to $1.88 million through deposits on Bybit since June 2025.
We’re pleased to announce the successful completion of a $1.88 million AVL token buyback and burn, reinforcing our long-term commitment to creating sustainable value for our community and ecosystem.
As part of this program, Avalon Labs deposited 1.88 million USDT into Bybit… pic.twitter.com/ADzrrfjfaM
— Avalon Labs (@avalonfinance_) September 10, 2025
The company mentioned that, by this, the supply of AVL in circulation has been reduced forever. From data obtained from BSC Scan, Avalon has since June of 2025 destroyed 93.95 million AVL tokens, which account for one-third of the circulating supply. The buyback was entirely funded through its monthly protocol revenue.
Avalon Labs said the move was part of its long-term strategy to strengthen its ecosystem. The company stated:
We remain committed to advancing our mission of building the leading on-chain capital market for Bitcoin, and will continue to explore sustainable mechanisms to strengthen the Avalon ecosystem,
Ecosystem Growth and Partnerships
Avalon Labs has worked on integrating services across both centralized and decentralized platforms. Earlier in 2025, Bybit integrated Avalon’s BTC lending protocol, creating a bridge between CeFi and DeFi. The collaboration has given Avalon more visibility and added utility for its services.
The project also gained support from YZi Labs, an investment firm backed by Binance. YZi Labs invested in Avalon in May 2025, adding to AVL’s presence within broader blockchain circles. While this backing strengthens market credibility, AVL remains an Ethereum-based token, making it less likely for inclusion in Binance Alpha programs.
Market Reaction to Token Burn
The announcement of the buyback saw the price of the AVL token rise. It went up 9% and was trading at $0.15 earlier that day. Still, this is far below its all-time high of $0.70 set some time earlier this year.
Daily trading volume rose around 9%, going above the $25-million mark. The market reaction seems to indicate increased activity surrounding the token as supply keeps on contracting. At the time of writing, AVL trades at $0.1467, recording a 9% uptick in the past 24 hours and 14% over the past week, with a 24-hour trade volume of $24 million.
Additionally, AVL has a total supply of 1 billion tokens, with roughly 161 million currently in circulation. Only 16.6% of the supply is unlocked at present, with future token releases scheduled in the coming months.
The buyback-and-burn method has poured its magic on 93.9 million AVL, thereby reshaping the available supply in circulation. With fewer tokens in market circulation, Avalon can continue to build up liquidity and extend its activities in decentralized lending services.
