Avalon Labs, a fintech firm specializing in Bitcoin-backed capital markets, has taken a significant step towards deflation by permanently burning 80 million AVL tokens. This move, valued at approximately $16 million, came from unclaimed airdrop tokens previously dispersed. The company’s official Twitter account (@avalonfinance_) confirmed the permanent removal of these tokens from circulation. Market reaction to this news has been positive; the AVL token price soared over 18% following the announcement. This surge aligns with previous token burn events, such as Binance’s BNB, which often lead to bullish price movements during deflationary cycles. Avalon Labs is now poised for increased user engagement and investor alignment thanks to recently securing $2 billion in funding for BTC-backed lending. The AVL token burn could also drive positive institutional and investor sentiments towards the broader ecosystem.