Token Burn Events: A Key Strategy in Crypto Supply Management

Crypto

Token Burn Events: A Key Strategy in Crypto Supply Management

When a digital assets supply is decreased, the price of that asset may increase, benefiting holders of the token. These events, however, do not guarantee immediate price jumps and could even be considered a market manipulative tool for projects that do not have strong fundamentals. In the last few years, however, strong projects with solid fundamentals have conducted meaningful burn events. Here are some of them.

Recent Burn Events Across Prominent Crypto Assets

In the past few months, several major cryptocurrencies have been engaged in token burning, with some involving large amounts of their fully diluted valuations (FDV). Heres a look at the most significant burns that have happened lately.

$BGB – A Massive Burn on April 17th

On April 17, 2025, a leading digital asset in the market, the $BGB token, burned a quite remarkable 2.55% of its FDV. It is nearly 2.5 times the amount of mendacity needed to get on a billionaires radar.

Now, this is a part of the show where, ordinarily, I might try to stick a little price forecast in there for good measure, but to be honest, the $BGB token has such a strong community that the result could very easily steer the asset in an upward trajectory.

$BNB – Consistent Burn Strategy Continues

Binance Coin ($BNB), the native token of the Binance ecosystem, has a firm handshake with token burns. On April 16, 2025, Binance burned tokens right in front of their noses—a burn that, when added up, took out 1.00% of the token‘s FDV. Now, of course, this is the Future Development Value we’re talking about, and some observers are putting the number to the tune of $800 million for what Binance actually burned. Noting that since the next FDV is never quite the same as the last, our tokenomics friends over at Binance have kept the price level fortuitously stable and increased the runway for long-term growth. And they do this with a wink and a smile.

???? Recent Token Burn Events

Token burns help reduce supply and can support price growth. Heres a snapshot of the latest burn events with % of FDV:$BGB – 2.55% of FDV burned on Apr 17$BNB – 1.00% of FDV burned on Apr 16$ORCA – 30.5% of FDV burned on Apr 16$OSMO – 0.01% of… pic.twitter.com/BjvxzWB84m

— CryptoRank.io (@CryptoRank_io) April 18, 2025

$ORCA – A Major Reduction in FDV

Maybe one of the most zesty burns in current memory happened on April 16, 2025, when the $ORCA token underwent a burn of a staggering 30.5% of its FDV. In terms of amount, in relation to the current circulating supply, and in relation to what it might mean for the short-term and long-term price movements of the token, this is a very big deal. It‘s also obviously a very rare deal. So when something this significant happens, it’s only natural for investors to start thinking about the underlying reason for such a drastic move.

$OSMO – A Modest Burn in March

On March 9, 2025, the token $OSMO, which powers the decentralized exchange Osmosis, burned only 0.01% of its FDV. Given the current conditions of the crypto economy, this is a comparatively low percentage for a token to be burning. And unlike many other projects that are deflationary by design, $OSMO is not:

“Unlike other deflationary tokens, OSMO inflation isn‘t motivated by market arbitrage opportunities; there aren’t external OSMO governance tokens waiting to be minted that will drive up the price of OSMO. In fact, the only motivation we have for burning OSMO right now is to make OSMO worth more over time.”

$BORG – A Tiny Burn with Potential Implications

On March 5, 2025, the $BORG token had a tiny burn event, with just 0.04% of its FDV getting taken out of the circulating supply. For context, 0.04% of 67 million is about 28,000. The amount isnt large enough to visibly impact price or supply in any meaningful way, but again, it is about the principle of providing the appearance and reassurance that a small, as of yet, not super significant project like $BORG is managing its token well.

$CAKE – A Significant Burn in February

Conducted on February 27, 2025, 4.04% was reduced from PancakeSwaps native token FDV due to its most recent token burn. This is one of the more prominent and significant fires happening lately—happening in an exchange environment that is serving up a native token to a user base that is poised to notice disappearances in the supply of that token (in this case, by 4.04%).

$QUBIC – A Smaller Burn to Manage Supply

On February 19, 2025, the $QUBIC token witnessed a minuscule 0.08% of its FDV being burned. While this sounds insignificant, it‘s a step in the right direction for maintaining the supply of the token and introducing a little more scarcity into the ecosystem. And when it comes to positive price action, that’s the direction you want to head in.

The Strategic Importance of Token Burns

Even though there is a correction in the market currently, we believe it is a great time for HBAR to bring in more people to its ecosystem. We also congratulate HBAR Foundation for conducting HBAR token burns to reduce the number of circulating tokens. Following that, we profess $HBAR is an even more attractive investment option in comparison to many of its direct competitors.