- 73 million VGX tokens were burned, reducing circulating supply from 222 million to 149 million tokens
- VGX price surged 20% after the token burn, from $0.27 to $0.33, as reduced supply increased demand
- VGX market cap rose to $50 million, but price remains below March 2021 all-time high; future burns could further boost value
Voyager Token (VGX) jumped 20% recently after 73 million VGX tokens were sent to a burn address, reducing the circulating supply. This blog post examines the details behind the VGX burn and the resulting price increase.
Details of the VGX Burn
- 73 million VGX tokens, worth around $20 million, were transferred to a burn address
- This reduces the circulating supply of VGX from 222 million to 149 million tokens
- Burning tokens can increase the value of remaining tokens by making them more scarce
- Voyager CEO Steve Ehrlich said the burn was meant to reward loyal VGX holders
Market Reaction to VGX Burn
- VGX price jumped from around $0.27 to $0.33 after the token burn, a 20% increase
- Trading volume also spiked from $2 million to over $20 million daily
- Reduced circulating supply and increased scarcity appears to have boosted demand
- VGX market cap is now around $50 million, up from $40 million before the burn
Future Impact on VGX Price
- With fewer tokens in circulation, demand may continue to increase, further boosting VGX price
- However, VGX price remains below its all-time high of around $5 from March 2021
- Ongoing utility development for VGX will be key to sustaining price growth long-term
- More token burns could occur in the future, according to Voyager CEO
Conclusion
The large VGX token burn by Voyager reduced the circulating supply and appears to have increased demand and price, at least temporarily. It remains to be seen if this growth will continue or if VGX will retrace some of the gains. The burn could enhance VGX’s scarcity and value over the longer term if demand stays strong.
