Celsius Network has made a significant move by burning a substantial portion of its CEL tokens, totaling 652.2 million CEL, equivalent to $85.75 million.
This action represents a staggering 93.7% of the total CEL supply, effectively reducing the current total supply to 40.6 million CEL, as reported by CoinGecko.
Following the burn, there has been a noticeable uptick in the CEL price, experiencing a 7% increase from $0.13 to $0.139 within the past 7 hours post-burn.
#CelsiusNetwork burned all 652.2M $CEL ($85.8M), or 93.7% of the total supply, 7 hours ago, as stated in its Sep 2023 bankruptcy filing.
This reduced the total supply to 40.6M $CEL ($59M), and might have boosted the $CEL price by 7%, from $0.13 to $0.139.
However, $CEL appears… pic.twitter.com/CGyGr8CbFx
— Spot On Chain (@spotonchain) May 1, 2024
Interestingly, despite the token burn, CEL continues to be traded normally on various centralized exchanges (CEX), including OKX, Bitget, Gateio, Bybit, and MEXC. This indicates a positive reception from the market towards Celsius Network’s decision to reduce the token supply.
The decision to burn CEL tokens aligns with Celsius Network’s previously stated intention, as outlined in the September 2023 bankruptcy filing. However, the recent announcement of plans to distribute $3 billion in crypto to creditors in January 2024 did not mention the token burn, raising some eyebrows within the crypto community.
Celsius CEL Token Price Action And Trading Volume Data To Watch
It’s worth noting that Celsius conducted a test burn of 2 CEL tokens three months ago on January 24, 2024, possibly as a precursor to the larger-scale burn executed recently.
Despite the positive development of the token burn, Celsius Network has faced a decline of 11% in the past 7 days. However, amidst this downturn, there has been a notable surge in trading volume, which has seen an impressive increase of 168% today. This suggests that despite market turbulence, there is still significant interest and activity surrounding CEL trading.
Overall, Celsius Network’s decision to burn a significant portion of CEL tokens has sparked optimism among investors, reflected in the uptick in price and heightened trading activity. As the market continues to evolve, all eyes will be on Celsius Network to see how this move impacts its trajectory in the crypto space.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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