According to reports, OKX conducted the 23rd OKB repurchase and burning on March 16. The renowned cryptocurrency exchange burned approximately 11.48 million OKB, equivalent to about $744 million, again setting a new high.
OKX conducted the 23rd OKB repurchase and burning on March 16. The number of OKB was approximately 11.48 million, equivalent to approximately $744 million, once again setting a new high. OKX previously stated that it would be burned based on market and operational performance,…
— Wu Blockchain (@WuBlockchain) March 16, 2024
It is essential to note that OKX previously stated it would burn OKB based on market and operational performance without disclosing specific rules. The latest burn exercise tops the previous one by about $114 million. The last OKB burn was in December 2023, when OKX repurchased and burned OKB tokens worth approximately $630 million.
Crypto users consider such token burn exercises bullish in the price dynamics. It removes a portion of the crypto’s supply from circulation, making the asset more scarce. The induced scarcity consequently triggers an increase in the value over time.
Despite the bullish sentiment associated with token burns, OKB’s price did not react likewise as at the time of writing. Instead, the price dipped slightly, dropping from a daily opening price of $67.01 to $66.16 at the time of writing, according to data from TradingView.
The OKB price trend is not a surprise, considering how it has developed in the past following the previous token burns. Historical data reveals a consistent pattern, with OKB hardly reacting positively after a token burn. Instead, it makes a dip or trades sideways for a few weeks before experiencing any rally.
OKB currently ranks in the 35th position on CoinmarketCap, with a market capitalization of $3.97 billion. The token burn exercise is a quarterly event scheduled by OKX, and users expect another token repurchase and burn to happen around the middle of the year.
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