Flare Network Burns Over 66M Tokens, FLR Price Attempt to Rebound

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As a seasoned analyst with years of experience in the cryptocurrency market, I have seen my fair share of coins coming and going, but Flare (FLR) has been one that catches my attention due to its unique approach to community building and long-term sustainability. The recent burn of 66,293,390 FLR tokens worth approximately $1 million is a testament to the network’s commitment to maintaining a strong and healthy ecosystem.

As an analyst, I’m sharing some exciting news about the Flare (FLR) network. Today, this decentralized data infrastructure, built on a layer-one blockchain, announced the destruction of 66,293,390 FLR tokens, approximately equivalent to $1 million in value. This recent token burn is part of the 2.1 billion tokens that were approved by the community last year for removal from circulation. The aim behind this action is to contribute positively to the Flare network’s community.

Significantly, the Flare network aims to finish its regular FLR token destruction by January 2026. As stated by Hugo Philion, co-founder and CEO of the Flare network, this monthly FLR token destruction is expected to significantly contribute to cultivating a strong community over time.

Additionally, the initial investors’ share of Future Land Reserve (FLR) was decreased by approximately 40%, thus preventing a significant increase in the existing FLR circulation.

66,293,390 $FLR burnt.
This directly benefits you:
“In the absence of this burn, investors could potentially triple their initial investment amount via the #FlareDrops, which might not be fair as it could artificially decrease the value of community holdings.”
More about the 2.1 billion $FLR burn:
— Flare ☀️ (@FlareNetworks) August 8, 2024

Impact of the Flare Network Burn on FLR Price Action

For most of this year, the Future Licensing Rights (FLR) price has predominantly followed a downward trend, indicating a pessimistic market sentiment. This mid-sized cryptocurrency, valued at over $1.6 billion when fully diluted and typically trading around $10 million daily, experienced a decline of approximately 20% during the latest crypto market dip.

As a result, the FLR‘s price in U.S. dollars has reached an oversold point on the weekly Relative Strength Index (RSI), indicating potential for a rebound.

As an analyst, I’ve been closely observing the price action of FLR, and from a technical perspective, it appears to be shaping as a bullish pennant flag. This formation, if confirmed, might lead to a strong, swift recovery in the upcoming months, forming a potential V-shaped rebound pattern.

To ensure a quick recovery, it’s crucial that the FLR price maintains its defense above the significant support level of $0.018, which aligns with the weekly 0.786 Fibonacci Retracement. This will help secure an upward trend.

In simpler terms, a significant reduction (burn) in FLR each month could strengthen optimistic expectations for the future, particularly during the expected altcoin season, which is likely to occur following Bitcoin‘s shift in weekly dominance.

Brighter Future

Through the Flare network, developers of decentralized applications (Dapps) can construct robust, secure, and interconnected protocols. At present, the Flare network boasts a Total Value Locked (TVL) of approximately $9.36 million. To date, it has amassed over $11 million in funding to establish its web3 infrastructure.

As a crypto enthusiast exploring the world of DeFi, I’ve found myself drawn to platforms like Clearpool, Enosys, Sceptre Liquid Staking, Kinetic Lending, and SparkDEX – all harnessing the power of the Flare network. These and other similar protocols are where I’m directing my attention for potential investment opportunities in the decentralized finance space.

On the XRPL (XRP) network, the Flare system has been fostering smart contract creation with its FAssets. Notably, the Flare team recently declared a temporary halt in the XRP testnet on the FAssets Beta until the network reaches stability.

Important Update: XRP Testnet Reset, FAssets Beta Reset
XRP testnet will be reset on August 19th, invalidating all FTestXRP.
FAssets open beta on Coston will be paused and reset until the XRP testnet stabilizes.
Action required:• Redeem FTestXRP by August 18th, 11:59 PM EST.…
— Flare ☀️ (@FlareNetworks) August 8, 2024

Flare Network aims to expand its Decentralized Finance (DeFi) environment by introducing a DeFi Emission Program worth 510 million FLR tokens. By designating these rewards exclusively for use within the protocol, the Flare team hopes to draw in more participants and grow the user base gradually.

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2024-08-08 21:13