Flare Network Burns 66 Million FLR Tokens as Part of Its 2.1 Billion Burn Program to Reduce Token Supply and Increase Value for Holders

Recent oversold conditions and positive Ripple ruling could lead to a price rebound. Flare network has a growing ecosystem with nearly 1 million wallet addresses and $9.36 million in total value locked.

Flare (FLR) Network, a layer-one blockchain focused on decentralized data infrastructure, has announced its latest monthly token burn, a move designed to enhance the value of community-held tokens. In this month’s burn, Flare incinerated 66,293,390 FLR tokens, part of a larger 2.1 billion FLR burn initiative set to run until January 0f 2026.

The Flare team is targeting a burn of over 2 percent of the total token supply by the end of the program, a development expected to significantly benefit long-term holders. According to Hugo Philion, CEO and co-founder of Flare Network, this massive 2.1 billion FLR burn—representing approximately 40 percent of the original allocation to early investors—is crucial in preventing the unfair dilution of community holdings.

"Without this burn, the investors would be able to claim approximately 3x their original allocation through the #FlareDrops, unfairly diluting community holdings."

More on the 2.1B $FLR burn: https://t.co/eW9U8uZfBr

FLR Price Struggles

Amid the ongoing crypto recovery, led by Bitcoin (BTC), Flare (FLR) price has not registered tangible results. Since the beginning of June 2024, FLR price against the US dollar has dropped over 45 percent to trade around $0.01615 on Thursday.

Technical Challenges

The small-cap altcoin, with a fully diluted valuation of roughly $1.66 billion and an average daily trading volume of about $10 million, has faced severe setbacks in recent weeks. Notably, FLR’s price closed last week below the key support/resistance level of $0.0183, which aligns with the 0.786 Fibonacci Retracement on the weekly chart.

However, there may be a glimmer of hope. The weekly Relative Strength Index (RSI) has dipped close to the 30 percent mark, indicating that the digital asset is significantly oversold. From a technical perspective, FLR could be poised for a V-shaped rebound in the near term, especially in light of the recent landmark ruling in the Ripple vs. SEC case.

Flare’s Expanding Web3 Ecosystem

Beyond price action, the Flare Network continues to grow as a vibrant Web3 ecosystem. The network boasts around $9.36 million in total value locked (TVL) across several DeFi projects, including prominent platforms like Kinetic Lending, SparkDEX, and Steer Protocol.

According to the latest data from FAssets, a Flare-based Web3 data infrastructure, there are now 987,303 total wallet addresses on the Flare Network, with 366,185 new addresses created in the last month alone—the highest month-over-month growth to date. In total, the network has processed over 93 million transactions since its inception.

The Flare Rich List has reloaded: 987K+ Total Accounts.

366K new accounts in ONE month = biggest MoM growth to date.

#FlareNetwork #FAssets #FLRRichList2024 ? pic.twitter.com/rmGEtjz5uO

As a result of its ongoing development, Flare now supports nearly 1 million wallet addresses and has processed over 93 million transactions since its inception.

The Flare Network is making moves to bolster its ecosystem and burn a significant portion of its token supply. Will these efforts be enough to fuel a sustained rally in FLR’s price? Share your thoughts in the comments, and stay tuned for more updates.

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