A historic token burn event that fixed the cryptocurrency's supply to
21 million has created extreme supply scarcity, fueling a price rally while technical indicators
flash warnings of an overbought market.
SINGAPORE – The OKB token, the native asset of the OKX crypto
ecosystem, has seen a meteoric rise, surging nearly 200% over the past week to
a recent high of $198.40. The rally was ignited by a strategic decision to burn
93% of the token's circulating supply, a move that fundamentally redefines its
economic model.
The massive token burn has permanently reduced and capped the total OKB
supply at 21 million tokens, mirroring the fixed supply of Bitcoin. This engineered
supply scarcity immediately increased the asset's desirability
among investors, leading to an 85% price increase in just seven days and a 295%
gain over the last 30 days. OKX has since automated the burn mechanism via a
smart contract, ensuring the scarcity is algorithmically maintained.
However, despite the
strong bullish momentum, technical indicators are signaling caution. The Relative Strength Index (RSI) has reached 92.66, a level widely considered to
be in severely overbought territory, suggesting a high risk of a sharp
price correction. Furthermore, while the Aroon Up indicator at 100% confirms
the powerful uptrend, the Chaikin Money Flow index indicates massive liquidity
inflows that could attract opportunistic selling from large holders, or "whales."
Analysts suggest a potential pullback to support levels around $149 or $142.88
is possible.
Underpinning the
token’s rally is a major technological pivot: the strategic migration to X Layer, a new network based on zkEVM technology. In this new ecosystem, OKB will
function as the exclusive gas token, making it essential for all on-chain
transactions. OKX is actively steering this transition by halting OKB
withdrawals to the Ethereum Layer-1 and phasing out the older OKTChain. The
full conversion is scheduled to be completed by August 2025, with the legacy
chain being shut down by January 2026.
This move
establishes a sovereign ecosystem for OKX, with X Layer promising to handle 5,000 transactions per second
with near-zero fees. The network is designed to support DeFi, global payments,
and the tokenization of real-world assets, placing the OKB token at
the center of a self-contained and high-performance blockchain.
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