OKB (CRYPTO: OKB) is experiencing a surge, climbing 121.8% in the last 24 hours as of 3:45 p.m. ET. Earlier in the day, OKB’s price surged to a peak of 192.3%. This recent rise has been fueled by the near-term burn of nearly half the total OKB supply. On top of that, there’s a wave of positive sentiment sweeping through the cryptocurrency market. The burn, taking place on Aug. 15, will permanently eliminate about 65.26 million OKB tokens from circulation. This gives these tokens a market value of about $7.6 billion.
Token Burn Details
Today’s scheduled token burn will see the removal of approximately 65.26 million OKB tokens from circulation. These tokens, totaling around $7.6 billion, likely will be transferred to an unreachable wallet. This process permanently removes these tokens from circulation.
The burn is informal, one-off performance scheduled for Aug. 15. When it’s done, approximately one-half of the entire OKB supply will have been destroyed. This decrease in supply is expected to lead to an increase in the value of the remaining OKB tokens.
Market Sentiment
This third driver of OKB’s recent rise is the forecasted continued growth of the crypto market at large with bullish sentiment taking hold. This rosy picture is in large part due to the IPO of Bullish, a cryptocurrency exchange owned by crypto-booster Peter Thiel. More than that, the successful launch — by all accounts designed to go smoothly — has given investors confidence.
The market’s optimistic reaction to these bullish developments usually extends to the rest of the crypto market. This has been a positive tide for tokens such as OKB. This, of course, comes as investors are expressing renewed optimism in the cryptocurrency space.
Impact of Token Burn
The token burn is anticipated to provide long-term support for the value of OKB. By decreasing the overall supply, the burn intends to inject some level of scarcity. It is possible that scarcity will ignite demand and thus raise the price for the scant tokens that are left.
There is one very good reason burning 15% of the OKB supply forever makes perfect strategic sense. This decision is largely to expound on the value proposition of the token. The OKEx burn must send a message that reinforces confidence in the long-term viability and potential of the OKB ecosystem. Investors are seeking to see how this burn will favorably impact OKB’s market performance.
