Avalon Labs Completes $1.88 Million AVL Token Buyback and Burn

Avalon Labs has completed an AVL token buyback and burn worth around $1.88 million. In total, the protocol has burned as much as 37% of its circulating token supply since June 2025.

Token Buyback and Burn Details

In a recent post, Avalon Labs informed traders that it had completed a $1.88 million AVL token buyback and burn. The tokens were deposited into Bybit from June 2025 and completed AVL purchases at an average price of $0.1347.

Mission to Sustain Token Value

The protocol has been on a mission to sustain the value of their tokens by performing regular buybacks using funds from their revenue. “As part of this program, Avalon Labs deposited 1.88 million USDT into Bybit starting in June 2025 and executed AVL purchases at an average price of $0.1347 USD,” said the protocol.

Total Tokens Burned

“In total, 13,955,164 AVL tokens were repurchased and permanently burned,” continued the project. Since June 2025, Avalon Labs has burned a total of 93,955,164 AVL which are worth $13.8 million. This amount is equal to 37% of the circulating supply, which stands at 254.25 million.

Increasing Scarcity and Value

By drastically reducing supply, the project aims to increase scarcity while continuing its broader mission of developing the leading on-chain capital market. According to the recent post, future efforts from the protocol will focus on sustainable mechanisms that are meant to strengthen both the protocol and the value of AVL for long-term holders.

Funding the Buyback Program

The buyback and burn program was entirely funded by Avalon Labs’ monthly protocol revenue. This means that the capital came from actual platform activity rather than external fundraising. The project is generating consistent usage and revenue, and is reinvesting it back into the ecosystem to reward token holders.

AVL Price Analysis

Avalon Labs’ AVL token experienced a sharp breakout on September 10, following the announcement that the project has burned 37% of its circulating supply. At press time, the token has risen by 7.6% in the past 24 hours. It is currently trading at a price of $0.147.

Price Movement and Technical Analysis

Prior to the news, AVL had been consolidating in a tight range between $0.125 to $0.135, reflecting muted investor activity. The burn announcement sparked a surge in buying pressure, pushing the token as high as $0.155, its strongest hourly rally in weeks. This type of move highlights how aggressive supply reductions can trigger immediate price reactions, as traders anticipate increased scarcity after the protocol started burning tokens.

Outlook and Sustainability

However, not long after the spike AVL retracted back to the $0.145–$0.146 zone, showing that some holders took quick profits. The pullback formed a small flag-like consolidation, a technical pattern that often signals continuation if buyers return. Supporting this outlook, the RSI indicator touched 69.59, brushing against overbought territory before easing lower. While this suggests AVL was temporarily overheated, it also reflects strong momentum that could carry further if buying volume sustains.

Conclusion

By permanently removing over a third of the circulating supply, Avalon Labs signals its commitment to value preservation and long-term scarcity. This supply shock creates a bullish narrative, but the sustainability of the rally will depend on whether demand for AVL’s ecosystem utility is able to grow after the token burn.