The ASTER token saw a 2.37% price increase to $0.702 following a significant token burn by its team. A total of 911,964 tokens were permanently removed from circulation, continuing the project’s deflationary measures amidst a prolonged period of sideways trading.
The altcoin Aster [ASTER] has been consolidating between $0.65 and $0.76 for nearly a month after failing to breach the $0.76 resistance level. As of the latest data, the token traded at $0.702, rebounding from a recent low of $0.67 on the daily charts.
In an effort to absorb downside pressure, the Aster team implemented another deflationary measure. According to Aster-Dex, 455,982.11 ASTER tokens were permanently burned and an equal amount was transferred to the Treasury Contract.
These tokens were part of the project’s Airdrop Stage 5 distribution. The latest burn eliminated a total of $123.63 million in tokens from circulation since the initiative began.
Typically, token burns reduce circulating supply to increase scarcity. The team has also continued a token buyback program, now in its sixth season.
So far, the team has spent $7.6 million to buy back 12.2 million tokens. In total, Aster has repurchased 266.3 million tokens worth $187 million.
Combined, the burns and buybacks are designed to reduce supply and absorb sell-side pressure. These actions have previously offered ASTER short-term relief, helping the altcoin reclaim the $0.7 level.
As a result, the token flipped its short-term 20- and 50-period Exponential Moving Averages. The Relative Strength Index (RSI) also jumped from 48 to 52, edging into the bullish zone, though it failed to make a definitive bullish crossover.
Demand for Aster derivatives has remained steady despite broader market conditions. Data from DefiLlama shows ASTER’s Perpetuals Volume has stabilized above $2 billion for three weeks, currently around $2.25 billion.
Its Open Interest also held strong, currently around $2.1 billion. When Perps volume and Open Interest rise together, it indicates increased market participation and capital inflows.
