Aster burns 77.86M ASTER after completing S3 buyback; S4 ongoing
Aster completed its Season 3 (S3) buyback program and permanently burned 77,860,328 ASTER on Dec 5, representing roughly half of the 155.7M tokens repurchased in S3. The other ~77.86M ASTER were locked in an airdrop/rewards wallet for ecosystem incentives (user rewards, airdrops, events, builder grants). The team says Season 4 (S4) buybacks are ongoing as part of a broader deflationary tokenomics plan tied to the project’s roadmap and future Layer‑1/mainnet ambitions. Since September, Aster — a multi‑chain DEX backed by YZi Labs — has removed over 296M tokens across three buyback seasons. Despite the large supply reduction, ASTER showed limited immediate upside: trading near $1.03 on Dec 5, down about 2% over 24 hours, with roughly $260M 24‑hour volume. Analysts estimate the burn equals ~1% of total supply, implying a modest near‑term price impact. Technicals noted a recent demand-zone re-entry after a brief sell-off and resistance around $1.09–$1.20; a decisive break above immediate resistance could target higher levels (analysts cited $1.50). Traders should weigh the deflationary effect and locked airdrop allocations against prevailing market weakness, declining volume and sentiment-driven volatility — deflation alone may not drive sustained rallies, but repeated buybacks, burn+lock mechanics and roadmap progress could support medium‑ to long‑term scarcity and liquidity stability.
Neutral
The net market impact on ASTER is likely neutral. The completed S3 buyback and 77.86M token burn are substantively deflationary and reduce circulating supply, which supports medium‑to‑long‑term scarcity. However, the burn equals roughly 1% of total supply and the team simultaneously locked an equivalent amount for future airdrops and incentives, which mutes immediate scarcity effects. Price showed limited positive reaction (≈‑2% over 24h) amid weak volume and bearish technical signals. Short term, market sentiment, low volume and macro conditions are more likely to govern price action than the one‑off burn. Over the medium to long term, repeated buybacks, continued burns and successful roadmap execution (L1/mainnet, Shield Mode, staking, fiat rails) would be constructive and could become bullish if they materially tighten circulating supply and attract demand. For traders: expect limited immediate volatility from the burn itself; instead monitor on‑chain supply changes (unlocks/airdrops), S4 buyback cadence, volume trends and price action around the cited resistance levels for clearer directional cues.