OKB, the cryptocurrency token of the exchange OKX, saw its price surge after the company completed a $7.6 billion token burn of 65.26 million OKB, effectively halving its circulating supply. The supply reduction led to a 200% increase in price, rising to approximately $142, with trading volume escalating by 13,000% to around $723 million as traders responded to this unexpected supply shock.
Key Highlights
- OKX has permanently cut the supply of OKB by 52%, setting a total cap of 21 million tokens.
- The immediate effect of the burn was a rapid price increase from $46 to $142 followed by a slight retracement to around $102.
- The exchange anticipates that ongoing momentum will rely on the adoption of its X Layer blockchain, set to enhance transaction speeds and reduce gas fees.
OKB Token Burn
Image Source: JP Valery/Unsplash
The swift price reaction mirrors the strategy seen with Binance’s BNB token, which benefits from regular burn events. As OKX works on the adoption of its X Layer blockchain, the future trajectory of OKB will hinge on its successful transition from Ethereum-based tokens to its proprietary layer.
