Orca Token Burn: How This Will Impact ORCA's Price

Discover how the recent 25% ORCA token burn impacts supply, price potential, and investor sentiment in the Solana-based Orca ecosystem.

Orca Token Burn: How This Will Impact ORCA's Price

Orca (ORCA), the native token of the Solana-based decentralized exchange, recently underwent a significant token burn event that removed 25 million ORCA tokens—about 25% of its total supply—from circulation. 

This strategic move aims to reduce supply, potentially boosting scarcity and supporting price appreciation.

Also read Orca (ORCA) Price Prediction 2025–2030: Will Solana’s Top DEX Keep Surging?

What Is a Token Burn and Why Does It Matter?

A token burn permanently removes tokens from the circulating supply by sending them to an inaccessible address, often called the "abyss." This deflationary mechanism reduces supply, which, if demand remains steady or increases, can create upward price pressure. 

Token burns are commonly used by crypto projects to reward holders and signal commitment to long-term value.

Also read How to Buy Orca (ORCA)

Details of Orca’s Token Burn and Governance Proposal

The recent burn is part of a broader governance proposal approved by ORCA holders. Besides the 25% supply reduction, the proposal includes plans for a $10 million buyback program using treasury funds to purchase ORCA tokens from the open market, further tightening supply.

Additionally, the protocol aims to use fees generated by the decentralized exchange to incentivize staking, rewarding long-term holders and promoting ecosystem growth. This comprehensive approach not only reduces supply but also encourages holding and participation.

Also read Why Is ORCA Going Up? A Deep Dive Into the Latest Governance Proposal

How Could This Affect ORCA’s Price?

Following the burn announcement, ORCA’s price has shown strong momentum. As of mid-April 2025, ORCA trades around $3.50 with a market cap near $190 million and healthy trading volumes. Analysts anticipate that the reduced supply combined with buybacks and staking incentives could drive price appreciation.

Price predictions vary, but technical forecasts suggest ORCA could reach between $3.50 and $9.00 by mid to late 2025, reflecting potential gains of over 150% from current levels. Some optimistic scenarios even project higher prices if the broader DeFi and Solana ecosystems continue to expand.

Other Token Burns Market Context and Comparisons

Token burns are a common strategy in crypto to manage supply and stimulate demand. For example, Osmosis (OSMO) recently conducted a modest burn, but Orca’s 25% reduction is notably more aggressive, highlighting the project’s commitment to deflationary economics.

This move aligns Orca with other successful DeFi tokens that use burns and buybacks to maintain token value and incentivize holders, positioning ORCA as a strong contender in the competitive Solana ecosystem.

What Should Investors Watch?

• Supply Metrics: Monitor circulating supply changes and treasury buyback activity.

• Price Action: Watch for sustained price increases and volume spikes following burn-related news.

• Staking Participation: Increased staking could reduce sell pressure and enhance token scarcity.

• Ecosystem Development: Continued upgrades and partnerships will support long-term growth.

FAQ

1. What does burning 25% of ORCA tokens mean?

It means a quarter of the total ORCA supply is permanently removed, reducing circulation and potentially increasing scarcity.

2. How does a token burn affect price?

By lowering supply, burns can create upward price pressure if demand remains steady or grows.

3. What other measures are included in Orca’s governance proposal?

Besides the burn, there’s a $10 million buyback plan and staking incentives funded by protocol fees to reward holders.

4. Could ORCA’s price reach $9 or higher this year?

Analysts suggest it’s possible if the burn, buybacks, and ecosystem growth continue, but market conditions remain key.