AVAX token burn rate increases 200% YTD, tightening token supply

Avalanche Weekly Overview - October 15, 2025

Welcome to the Avalanche Weekly Overview, the AVAX community’s one-stop-shop for the latest on the network’s metrics, releases, insights, updates, ecosystem developments and more. All in one place.

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Avalanche by the numbers

• Avalanche Total Value Locked (TVL): $1.89B (-13.36%)

• Avalanche C-Chain daily txns: 1.5M (-21.05%)

• Max transactions per second: 753 (+3.43%)

• Total Avalanche validators: 882 (+1.62%)

• Total Avalanche L1s: 369 (+1.93%)

The percentages and metrics are based on a 7-day timeframe from Token Relations data, unless noted otherwise.

Inside the network

🔺What we’re watching: Over the past week, the total AVAX tokens burned surpassed 4.8 million, worth about $108 million.

🔺Why it matters: Burning tokens, or destroying them, isn’t a novel concept within crypto, as issuers want to reduce the total supply in a bid to increase the value of circulating tokens. But the rate at which Avalanche is burning them is worth keeping an eye on.

At the beginning of 2025, Avalanche was burning less than 500 AVAX tokens a day. Today, that number is up 200% to over 1,500 tokens burned per day.

“Remember, once tokens are burned they are taken out of the circulating supply forever,” Joey Cuccaro, business operations at Ava Labs, said on X. “This creates a deflationary effect as each remaining token represents a slightly larger share of the total network’s value.”

More general adoption, Avalanche Interchain Messaging (ICMs), and “unique plans” for revenue generation can contribute to the “acceleration of burning more tokens,” Cuccaro added.

The network’s rapidly intensifying burning strategy stands to reshape the economics of the AVAX token, especially now that Avalanche Treasury Co. has launched with plans to build a $1 billion ecosystem treasury of AVAX after listing next year. This move can provide momentum and exposure to institutional investors looking to get involved with the network and its token.

🔺The bigger picture: As the crypto market evolves, token availability should also change to fit demand. Avalanche is also working on ways to increase and burn more AVAX, Cuccaro posted.

Avalanche’s high token burn rate points to a more sustainable, long-term potential for the asset in the broader crypto market. As the ecosystem gathers more institutional attention and capital, burning can create a more robust, deflationary standard that benefits token holders in the long term.

Scaling the ecosystem

• ICYMI: S&P Dow Jones Indices and Dinari launched a new crypto index on Avalanche, featuring 15 cryptocurrencies and 35 crypto-related stocks

• The Avalanche Foundation shared the latest update on grantees’ progress, including Snowpeer, Youmio, Suzaku, Banza App, Areta Market, and Artery Chain

• Monthly active addresses across Avalanche L1s increased 50x year-over-year

• Learn how FanHub is creating a gamified app and economy for sports fans on Avalanche

• Total transactions on Avalanche have surpassed 7 billion, up from about 2 billion at the beginning of 2025

AVAX community wins

• Laine Litman, former partner at credit network Hidden Road, is joining Avalanche Treasury Co. as its COO

• Watch Ava Labs’ chief strategy officer, Luigi D’Onorio Demeo, talk at the Hedgeye Investing Summit about tokenization, stablecoins, Avalanche and more

  • Also check out Luigi’s post on how eERC on Avalanche can power privacy for DeFi, payments and web3 apps

• GUNZ shared in its October update that 313,000 players have migrated to its mainnet

• The Defiant’s new “ecosystems podcast,” focused on the largest networks and protocols through a mini-series, starts with a look at Avalanche

Join in the fun

Want to dive deeper into Avalanche?

• Find the latest Ava Labs job postings here

• Explore the Avalanche Ecosystem Job Board to find companies building onchain

• Check out The Avalanche Awakening, a campaign launched by Turtle, a liquidity distribution protocol, and Ava Labs that seeks to expand liquidity on the blockchain, featuring up to 25,000 AVAX in rewards

• In Vietnam? Join the Team1 FIFA Collect Watch Party on Oct. 25

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This product was built by Token Relations.

This information is for entertainment purposes only. It should not be considered financial advice, nor should it be used to make investment decisions. Cryptocurrencies are high risk and you should consult a financial professional before making any financial decisions. Make sure you do your own research.