News

OKX Halves Token Supply in Massive Burn, OKB Price Soars

by Crypto Hobby

Updated August 25, 2025

Cryptocurrency exchange OKX has dramatically reduced the supply of its native token, OKB, by burning over 65 million tokens.

This significant deflationary move, valued at approximately $7.6 billion, has more than halved the token's maximum supply to 21 million, mirroring Bitcoin's scarcity.

The burn has already caused OKB's price to surge, with trading volume experiencing a massive spike as investors react to the supply shock.

Key Takeaways

OKX burned 65.26 million OKB tokens, reducing the supply by over 50%.
The token's price surged from $46 to $142 before settling around $102.
Trading volume for OKB increased by 13,000% following the announcement.
This strategy is similar to Binance's BNB token burn events.

OKX Slashes OKB Token Supply

In a move that has sent ripples through the crypto market, OKX executed a one-time burn of 65.26 million OKB tokens. This action permanently removes these tokens from circulation, effectively cutting the maximum supply by more than half, bringing it in line with Bitcoin's hard cap of 21 million. The burn, executed from OKX's reserves, is considered one of the most substantial deflationary events in the history of exchange tokens.

The immediate impact on OKB's price was dramatic. The token experienced a more than threefold increase, jumping from $46 to a record high of $142 shortly after the burn. While it later retraced to approximately $102, the volatility attracted significant market attention. Trading volume for OKB surged by an astonishing 13,000%, reaching $723 million as traders sought to capitalize on the sudden scarcity.

This strategic supply reduction mirrors the approach taken by rival exchange Binance with its BNB token, which undergoes regular quarterly burns that often precede short-term price rallies. The success of such deflationary mechanisms in boosting token value is a well-observed phenomenon in the cryptocurrency space.

Other Notable Developments in Crypto

This week's crypto news also highlighted several other significant events:

Ethereum Transaction Volume Climbs: Ethereum's transaction volume has seen a notable increase, approaching its all-time high. This surge is attributed to network capacity improvements, rising Ether prices, and reduced transaction costs, particularly for DeFi protocols. A 50% increase in Ethereum's gas limit since March has significantly boosted throughput and lowered fees.
Trading Bots Steal $1 Million: Malicious smart contracts disguised as trading bots have defrauded crypto users of over $1 million. The scam utilized AI-generated YouTube videos, aged accounts, and obfuscated code to trick users into deploying contracts that siphoned funds to attacker-controlled wallets.
Babylon Introduces Trustless Bitcoin Vaults: The Babylon protocol has launched trustless vaults, allowing Bitcoin holders to stake their BTC without relying on centralized intermediaries. These vaults aim to enable BTC to be used as collateral in DeFi applications, offering users yield rewards in Babylon's native token.
Sentient Launches The GRID: AI company Sentient has introduced The GRID, an open-source network for building and monetizing artificial general intelligence (AGI) systems, offering a decentralized alternative to closed AI marketplaces.
Stripe Appoints New CEO for Blockchain Venture: Stripe has appointed Matt Huang, co-founder of Paradigm, as the CEO of its upcoming blockchain venture, Tempo, signaling a focus on stablecoin-focused blockchains.
Do Kwon Pleads Guilty: Terraform Labs founder Do Kwon pleaded guilty to conspiracy to commit fraud and wire fraud, facing a maximum sentence of 25 years after the collapse of the Terra/Luna ecosystem.
Trump's Crypto Advisor Departs: Bo Hines, President Trump's crypto advisor, has left his position, with his deputy, Patrick Witt, expected to take over the industry's political priorities in Washington.