The price of Stellar (XLM) has increased by 25% in an hour after hearing the news that the Stellar Development Foundation has burned 55 billion XLM tokens.
Stellar Development has recently burned half of its token supply which caused an increase in the price of XLM.
XLM Price Surges by 25%
Stellar has succeeded to receive massive gain in the form of its price upsurge. The price of the coin jumped from $0.07 to the mark of $0.087.
The priced has surged by 25% and this price upsurge occurred after hearing the announcement from the Stellar Development Foundation.
The price value of the coin at the time of writing is trading at $0.081830 USD.
SDF burns 55 Billion XLM tokens
According to its official blog post, Stellar Development Foundation had recently burned 55 billion XLM tokens. It is half of the total supply of XLM which is burned.
In the blog post, the Stellar Foundation stated that the company aims to move forward so this token burning was part of their plan.
As the SDF stated:
SDF can be leaner and do the work it was created to do using fewer lumens. Over the years we’ve also seen that giveaways and airdrops have diminishing effects, especially in the outsized amounts our original plan was designed to support. So a smaller public-facing program would have just as much impact.
The Stellar Foundation further explained in its blog post that these burned tokens were reserved in giveaway and partnership programs.
These 55 billion XLM tokens that are burned by Stellar Foundation are worth almost $4.7 billion.
While speaking about the decision of burning these coins, one of the Officials Dixon stated in the conference:
We didn’t start by wanting to burn. We started by asking, ‘What do we need? As much as we wanted to use the lumens that we held, it was very hard to get them into the market.
This decision by Stellar Development Foundation has proved beneficial for the coin. The users of XLM will be feeling satisfied with this price upsurge of 25%.