Celsius Network, a previously embattled cryptocurrency lending platform, has taken a significant step by burning 652.2 million CEL tokens, representing a staggering 94% of the total token supply. The transaction, which took place on April 30th, sent the tokens to a null address, effectively removing them from circulation.

According to data from Etherscan, the burned tokens were valued at approximately $83.2 million based on the current market price. The transaction originated from a wallet controlled by Celsius, as identified by Arkham Intelligence data.

The burn has reduced the remaining token supply to 40.6 million CEL, as reflected in the updated data on CoinGecko. This significant reduction in supply has implications for CEL's market value, as a decrease in supply coupled with sustained demand could potentially lead to a price increase.

In the hours surrounding the burn transaction, the value of CEL rose from 13.0 to 13.7 cents, representing a 5% increase. However, this change is less notable when considering the broader crypto market's performance over the same 24-hour period, with the entire market experiencing a 4.4% decline and CEL's price falling by 5.3%.

Celsius Network's decision to burn its CEL holdings aligns with the company's bankruptcy case filing from September 2023. In the filing, Celsius stated its intention to burn all CEL tokens in its possession on the effective date of the reorganization plan. The company clarified that it could only burn tokens under its control and could not "cancel" all CEL tokens or prevent trading on exchanges.

The token burn was raised as an argument by Celsius to justify assigning a value of $0.25 per token to CEL, regardless of the company's actions regarding its holdings. Earlier in February, Celsius announced plans to distribute $3 billion in crypto to creditors, although the company did not explicitly mention a token burn in its public announcement on the effective date.

The massive burn of 94% of the CEL token supply represents a significant milestone for Celsius Network as it emerges from bankruptcy proceedings. By reducing the token supply drastically, Celsius has effectively consolidated its remaining tokens, potentially impacting the token's market value and dynamics. While the immediate impact on CEL's price has been relatively muted, the long-term implications of this move on the token's value and the broader cryptocurrency market remain to be seen.