OKX executed a massive burn of 65.26 million $OKB tokens, valued at $7.6 billion, reducing the circulating supply by 52%. The total OKB supply is now capped at 21 million (aligning with Bitcoin’s max supply cap).
Long-term price growth depends on adoption of OKX’s X Layer blockchain, which aims to enhance transaction speed and lower fees.
OKB’s price soared over 200% to $142, with trading volume spiking 13,000% to $723 million.
The burn, which permanently sent the tokens to an inaccessible wallet address, reduced OKB’s maximum supply to 21 million.
The effect of the token burn was quicker than an oil change. OKB’s price skyrocketed from $46 to a peak of $142 before stabilizing around $102.
Trading volume exploded by 13,000%, reaching $723 million, as traders reacted to the sudden supply reduction. OKB’s turnover ratio, which gauges trading activity against supply, surged from 0.03 before the announcement to 0.093, indicating increased speculative and strategic activity.
OKB’s price momentum hinges on OKX’s ability to boost adoption of its X Layer blockchain, where OKB serves as the native token. To support this, OKX plans to enhance transaction speeds and lower gas fees, as outlined in a blog post.
Additionally, the exchange is phasing out Ethereum-based OKB tokens, which can now be swapped for X Layer versions.
