Coinspeaker
Flare Network Burns Over 66M Tokens, FLR Price Attempt to Rebound
In a quest to benefit the community, Flare (FLR) network, a decentralized data infrastructure layer-one blockchain, announced the incineration of 66,293,390 FLR coins today, worth about $1 million. The recent FLR burn is part of the 2.1 billion tokens approved by the community last year to be obliterated from circulation.
Notably, the Flare network intends to complete its monthly FLR token burn by January 2026. According to Hugo Philion, co-founder and CEO of Flare network, the monthly FLR token burn will play a major role in building a robust community in the long haul.
Furthermore, the FLR supply of the early investors was reduced by about 40 percent, which could otherwise dilute the circulating supply.
66,293,390 $FLR burnt.
This directly benefits you:
"Without this burn, the investors would be able to claim approximately 3x their original allocation through the #FlareDrops, unfairly diluting community holdings."
More about the 2.1 billion $FLR burn: https://t.co/eW9U8uZfBr pic.twitter.com/FqUfJ5E6or
— Flare ☀️ (@FlareNetworks) August 8, 2024
Impact of the Flare Network Burn on FLR Price Action
The FLR price has been trapped in a bearish outlook for the better part of this year. The mid-cap altcoin, with a fully diluted valuation of more than $1.6 billion and a daily average traded volume of around $10 million, dropped over 20 percent in the recent crypto crash.
Consequently, FLR price against the US dollar has approved an oversold level on the weekly Relative Strength Index (RSI).
From a technical standpoint, FLR price has been forming a bullish pennant flag, which could yield a V-shaped rebound in the coming months.
However, FLR price must consistently defend the support level above $0.018, which coincides with the weekly 0.786 Fibonacci Retracement, to guarantee a fast rebound ahead.
The notable FLR monthly burn could significantly help defend the bullish sentiment in the coming months, especially amid the anticipated altseason that will be triggered by the reversal of the weekly Bitcoin dominance.
Brighter Future
The Flare network has enabled decentralized application (Dapp) developers to build scalable, secure, and interoperable protocols over its network. As of this writing, the Flare network has a total value locked (TVL) of about $9.36 million and already raised over $11 million to build its web3 ecosystem.
Some of the decentralized financial (DeFi) protocols that leverage the Flare network include Clearpool, Enosys, Sceptre Liquid Staking, Kinetic Lending, and SparkDEX, among others.
The Flare network has been building on the XRPL (XRP) network by enabling smart contract development through its FAssets. In the latest developments, the Flare team announced that the XRP testnet on the FAssets Beta will be paused until the network stabilizes.
Important Update: XRP Testnet Reset, FAssets Beta Reset
XRP testnet will be reset on August 19th, invalidating all FTestXRP.
FAssets open beta on Coston will be paused and reset until the XRP testnet stabilizes.
Action required:
• Redeem FTestXRP by August 18th, 11:59 PM EST.… pic.twitter.com/p2bXc3QZzL— Flare ☀️ (@FlareNetworks) August 8, 2024
The Flare network is on a mission to grow its DeFi ecosystem through a 510 million FLR DeFi emissions program. With the rewards expected to be distributed through the protocol participants only, the flare team anticipates attracting more users over time.
Flare Network Burns Over 66M Tokens, FLR Price Attempt to Rebound
