Astar Network To Burn 350 Million ASTR Allocation For Auction

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As a researcher with experience in the cryptocurrency market, I have observed that token burns can significantly impact the price of a token. The announcement of Astar Network’s (ASTR) intention to incinerate up to 350 million tokens has already led to a bullish trend for the asset.

Based on the outcome of a community governance vote, Astar Network plans to destroy as much as 350 million ASTR tokens.

Astar Network (ASTR) Burn And Possible Price Impact 

The burn that the popular multi-chain smart contract network plans to undergo will see the destruction of 5% of the total ASTR supply. These tokens were initially allocated to Polkadot parachain auctions which were shelved for a long time by the Polkadot protocol. In addition to the 350 million token burn, the protocol plans to send another 70 million ASTR to the community treasury.

As a crypto investor, I’ve noticed that token burns are an exciting development for any ecosystem because they decrease the number of tokens in circulation. This reduction often leads to scarcity, which can ignite a bullish trend and cause the price of the affected token to surge upward. After receiving news about ASTR‘s upcoming token burn, I have observed a noticeable increase in its market value.

As I analyze the current market situation, I notice that at the present moment, the ASTR token is priced at $0.07558. This represents a substantial 7% rise over the past 24 hours. Compared to some of its peers in the market, this growth places ASTR in a favorable position. Additionally, the trading volume for this token reached an impressive height of $50 million, surpassing Monday’s figure by 84%.

Beyond ASTR Burn, Memecoins Boosting the Deflationary Playbook

As an analyst, I’ve observed that aside from Astar, numerous other networks have introduced their tokens recently. The Decentralized Autonomous Organization (DAO) associated with Floki Inu put forth a proposal to eliminate over 15 billion tokens permanently from circulation by means of a token burn. Once granted authorization, the network set this plan in motion. Over the past year, the well-known dog-themed meme coin, Floki Inu, has executed numerous token burns. These events significantly influenced the 70% price surge that the Floki Inu token experienced.

Shiba Inu is another dynamic ecosystem known for its effective token burning mechanism. Notably, this mechanism results in the consistent destruction of SHIB tokens. Last Monday saw a remarkable surge in Shiba Inu’s token burn rate, which spiked an astounding 3800%. This increase aligns with earlier announcements from LUCIE, Shiba Inu’s marketing lead. Previously, LUCIE had hinted at an upcoming initiative that could significantly enhance the token burn rate.

Simultaneously, over 300.34 million SHIB tokens were eliminated from the circulating supply through the SHIB burn event. Notably, the wallet address “0x7fe…11264” stood out for making a substantial reduction in the token count.

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2024-07-02 18:13