Celsius Network Surges 18% After Recent Supply Burn

The Celsius Network surges 18% thanks to the recent supply burn but it is unclear how much of the gains are directly related to the burn. In today’s altcoin latest news, we are reading more about it.

Crypto lending project Celsius network surges 18% after performing its weekly supply burn. Other factors could be at play for the price increase as CEL saw gains of 2.27% in the there hours following the burn. Celsius is one of the most popular crypto lending platforms with $20 billion of assets under management and it carried out its latest token burn reducing its token supply in order to keep the prices high.

Celsius announced the news on Twitter and noted that about 63,502 CEL has been burned. The even seemingly increased the value of the token and the price of CEL increased from $3.43 to $4.05 as its highest point which represents an increase of 18.08% in a 24-hour period. The increase could be due to the anticipation of the burn rather than the effect of the burn and despite the burn happening on December 10, the CEL initial price rise took place hours earlier. The price increase could also have happened because of the anticipation of a live appearance of the project team at Real Vision’s Takeover event in Las Vegas. Some members of the community suggested that a whale holder sold off huge amounts of CEL tokens but this was supposed to cause the price of the token to decrease rather than to increase.

Celsius’ token made gains post-burn as well. The CEL price increased from $3.96 to $4.05 in the three hours following the burn. This however was later canceled out by the losses over the next hour as the prices are falling back to $3.96 again. Celsius is highly dependent on the coin burns as it carries out the process each week. It still remains to be seen whether the value gained via the events will last because the previous burns saw a steady decline in the coin’s value despite the small gains. The news came after two controversies for Celsius emerged. The project lost funds in the BadgerDAO hack and its CFO was arrested in Isreal on charges unrelated to the events. Regardless, Celsius remains popular as a crypto lending platform with $20 billion in assets under management.