#AsterBurns50%OfBuybackTokens

Aster will burn 50% of the tokens in its buyback address to solidify its long-term value.

The Aster price fell 2.8% following recent news that the team would embark on a plan to burn 50% of its buyback tokens, pushing the token below the $1 threshold.

Aster launched its first token burn, committing to burning 50% of its buyback tokens from Season 2 and 3 rounds and locking the remaining 50% for future airdrops.

Despite the announcement, the $ASTER price fell below the $1 threshold to $0.98, as investors awaited clearer signs that the new buyback and burn model would translate into stronger long-term price momentum.

The Aster team announced that it will begin developing its Season 3 buyback and airdrop model by burning some of its tokens in the vault. This is the team's first attempt at a token burn plan since it began buying back tokens from the market earlier this month.
Aster (ASTER) DEX announced in a recent post that it will begin burning 50% of all tokens obtained from buyback rounds, including tokens from both Season 2 and Season 3. The tokens will be burned directly on the public buyback address, effectively reducing the circulating token supply, which currently stands at approximately 2 billion.

Meanwhile, the remaining 50% of the buyback tokens will be directed to Aster's locked airdrop address, removing the tokens from circulation while also strengthening reserves for potential future airdrops.

By permanently removing 50% of the buyback tokens through a burn mechanism and locking the remaining 50% for future airdrops, the project introduces a dynamic that will ensure fewer tokens are in circulation. This means that a token's scarcity could lead to a rise in the Aster price. However, this is not always guaranteed.
Shortly after the news went viral, the Aster price fell from the $1 threshold it had previously maintained to $0.98.

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The team is informing its community that the mechanism will continue to be flexible and evolve over time.

The Aster team stated in their latest post, "Future buyback and burn mechanisms will continue to evolve, reinforcing Aster's commitment to sustainable growth and long-term value creation. More updates to come."
The ASTER buyback address currently holds $10.6 million worth of tokens. Aster tokens, with $10.1 million worth of tokens, make up the majority of its assets. Its funds are held in other tokens.

The team's last buyback took place on October 11th, when the project purchased 100 million ASTERs. Based on current market capitalization, the tokens are currently worth $98.9 million. A few days later, the team made the buyback address public so investors can track their on-chain holdings.

Earlier this month, the project announced that it would allocate approximately 70% to 80% of its Season 3 fees to buybacks of its own token, ASTER. The team stated that the allocated funds would be announced at the end of the third phase.
The Aster team stated, "As a growing project and in these uncertain market conditions, it is important to maintain operational flexibility. Next season airdrops and buybacks will be announced as details are confirmed."

Aster Price Analysis

The Aster price is currently trading around $0.99, just below the psychological threshold of $1, following a prolonged downtrend that lasted until the end of October. The token has retreated significantly from its peaks near $2.20 in early October. It is currently 58.9% below its previous all-time high of $2.41.
Despite the project's recent announcement of an expanded buyback and burn program, Aster's price momentum remains weak. Another reason for the Aster price decline could be the fake news circulating that Changpeng Zhao had sold off 35 million ASTER tokens. Zhao later refuted this claim, stating that the screenshots were photoshopped.

In conclusion, the implementation of the 50% token burn mechanism has not yet triggered a strong recovery, but it could support long-term accumulation once investor confidence stabilizes. The 30-period moving average is currently hovering around $0.94, acting as a short-term resistance level.
The Aster price has fallen from its October peak of $2.20 and is currently stabilizing below $1.

A close above this line could signal a shift in short-term expectations for the Aster price. However, if the token fails to recover to $1 and the sell-off continues, it could trigger a further decline towards the $0.80 region.

On the momentum front, the Relative Strength Index has risen to around 61, indicating a modest bullish recovery from recent oversold conditions. While this suggests some buying activity following the buyback announcement, investors appear cautious.

A sustained RSI move above 60 would be a strong indicator of a trend reversal, but a drop below 50 could see the market resume its downtrend.
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