- Huobi has recently burned over 1.9 million HT, showcasing its commitment to deflationary efforts.
- Whale holdings currently constitute around 95% of circulating HT, impacting the token’s price dynamics.
Huobi, the renowned cryptocurrency exchange, has made public its second-quarter burn rate for 2023. This provided key insights into the volume of HT tokens eliminated to create a deflationary environment. However, amidst these measures, the performance of the HT token remains less than stellar.
Huobi Ignites a Hefty HT Burn
On July 15, Huobi made a noteworthy announcement, unveiling the revenue figures for the second quarter of 2023, and the segment of this dedicated to token burns. An impressive 1,950,555 HT was burned during this quarter, representing 20% of Huobi’s revenues. Given this, it can be inferred that Q2 revenues reached approximately $26.91 million, an increase from the $16.55 million recorded in Q1.
This latest token burn pushes the total HT destroyed by Huobi to a staggering 298,940,224 HT as of July 15, 2023. This underscores the platform’s commitment to reduce HT’s circulating supply, potentially enhancing its value in the long term.
HT’s Price Trend Amid Token Burns
Despite Huobi allocating a substantial segment of its revenue to HT burn, the token’s price movement remains uneventful. The daily timeframe chart highlights a near-static trend, indicative of limited trading activity. Currently, the HT token is trading at approximately $2.76, marking a modest price surge of less than 1%.
The HT token has closely trailed its short Moving Average, which has acted as an immediate resistance level. Its long Moving Average has provided a more substantial resistance point in the $3.9 price range, signaling a long-term hurdle.
Although these Moving Averages indicate a lackluster price trend, the HT token maintains a bullish trend, albeit weak, as reflected by its Relative Strength Index.
A Closer Look at Trading Volume and Holders
According to Coin Market Cap, the minimal price increase resulted in a less than 1% rise in market capitalization. Contrarily, trading volume has seen a decline of around 13% over the past 24 hours.
Moreover, an analysis of the token’s distribution reveals that whales control a substantial 95% of the total supply. Long-term holders, as opposed to active traders and short-term investors, make up over 87% of HT token holders.
These factors suggest that the majority of tokens are being held rather than actively traded, contributing to the subdued trading volume and uninspiring price trend.
