Celsius Network Soars 18% Alongside Supply Burn
Crypto Briefing | Dec 11, 2021 11:56PM ET
It is unclear how much of those gains are directly related to the supply reduction. Celsius Network carried out its latest coin burn Dec. 10, reducing its token supply in order to keep prices high. Celsius announced the news on Twitter , noting that as much as 63,502 CEL (worth $250,000) had been burned.
The event seemed to have driven up the value of the project’s token. The price of CEL rose from $3.43 to $4.05 at its highest point, representing an increase of 18.08% over a 24 hour period.
This increase may have been due to activity in anticipation of the burn rather than the effects of the burn itself. While the burn took place at 6:13 PM UTC on Dec. 10, CEL’s initial price surge took place several hours earlier, around 1:00 AM UTC on Dec. 9.
The price increase could also have been influenced by other factors, such as the anticipation of a live appearance of the project team at Real Vision’s “Takeover” event in Las Vegas.
Some community members also suggested that a whale holder sold off a large amount of CEL tokens, though this should have caused the price of CEL to decrease instead of increase.
Regardless, Celsius’ token made slight gains post-burn as well. The price of CEL rose from $3.96 to $4.05 in the three hours following the burn, amounting to gains of 2.27%.
This, however, was canceled out by losses over the next hour, as prices fell back to $3.96 once again.
h2 Celsius Is Popular But Controversial/h2Celsius is highly dependent on coin burns, as it carries out the process on a weekly basis to achieve deflation.
It remains to be seen whether the value gained through the events of Friday will last, as previous burns have seen a steady decrease in the coin’s value despite any temporary gains.
The news came after two notable controversies for Celsius. The project appeared to have lost funds through a BadgerDAO hack. Additionally, the project’s CFO was arrested in Israel on charges unrelated to that event and unrelated to Celsius itself.
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Regardless, Celsius remains popular as a leading crypto lending platform. The firm claimed to have $20 billion in assets under management as of August 2021.
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