- Huobi burned over 800,000 HT tokens in Q1 2023, bringing the total to nearly 297M tokens burned
- While the token burn mechanism remains steady, there has been a decline in active addresses and network growth.
Huobi recently unveiled its Q1 2023 operational report, which included information on the latest HT token burns. This burn event was quite noteworthy, and it was worth considering how it impacted the value of HT.
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Huobi burns over 800,000 tokens
Huobi, in its Q1 report, highlighted upcoming partnerships and product launches. However, one interesting piece of information included in the report was the number of HT tokens that were burned during the first quarter.
Huobi reported that a total of 827,226 HT were burned in Q1 2023. This latest burn brought the total number of HT tokens burned to 296,989,226 as of the date of the report. Huobi implements token burn events by repurchasing and eliminating the token from circulation.
Every month, the company sets aside 20% of its revenues for this purpose. Of this amount, 15% is used to burn HT from the circulating supply, while the remaining 5% is allocated to burning HT team incentive rewards. In this way, Huobi ensures that its HT token is deflationary, which can increase its value over time.
Active addresses and network growth shows a decline
Although the HT burn has been consistently carried out since the implementation of the new burn mechanism, the number of active addresses showed a different level of stability. In fact, according to data from Santiment, there has been a steady decline in the number of active addresses.
The metric revealed a decrease from approximately 1,200 to 1,100, followed by a further decline to the 800 region as of the time of writing. Presently, there were only around 832 active addresses, which was a significant drop from previous levels.
Source: Santiment
In addition, an examination of the Huobi network growth revealed a lack of notable activities. According to the metric, the last significant network growth was observed on 9 March.
However, there has been a subsequent downtrend, and the network returned to regular activity levels. At the time of writing, the network growth was only at 16, indicating a relatively low level of network activity.
Source: Santiment
– Realistic or not, here’s HT market cap in BTC’s terms
Huobi (HT) falters on a daily timeframe
Upon examining the daily timeframe chart of HT, it was evident that the price movement remained flat until 10 April. However, from that point on, there was a seven-day consecutive uptrend until 17 April.
As of this writing, it was trading at approximately $3.9, with a slight loss of over 1.5%. Despite the uptrend, the token could not surpass its short Moving Average (yellow line), which acted as a resistance level.
Source: TradingView
