Aster has announced a 99% buyback of its token, a move that tightens supply and comes as the asset's price tests crucial recovery levels. The buyback is part of a broader effort to reduce the circulating supply, which also includes burns and outflows from exchanges.
Supply Tightens Through Buybacks, Burns, and Outflows
The buyback is one of several mechanisms Aster is using to shrink the number of tokens available. Alongside the repurchase, the company has been burning tokens and seeing outflows from exchange wallets, all of which contribute to a tighter supply picture. The combined effect is a reduction in the float, which can support price action if demand holds steady.
Details on the buyback's size and execution were not disclosed beyond the 99% figure, but the scale suggests a significant portion of the outstanding supply will be removed from circulation. The company has not said when the buyback will be completed, leaving the market to gauge the impact on supply and price in the coming days.
Price Tests Crucial Recovery Levels
Aster's price is now testing crucial recovery levels, a development that follows the buyback announcement. The token has been under pressure in recent sessions, and the supply reduction is seen as a potential catalyst for a rebound. Whether the buyback can push the price through these levels is the immediate question for traders.
The recovery levels are closely watched because a break above them could signal a shift in momentum, while a failure to hold might extend the downtrend. The buyback's effect on supply is expected to be gradual, but the market is already reacting to the news.
For now, the focus is on whether the buyback, combined with the ongoing burns and outflows, can sustain the price recovery. The company has not provided a timeline for the buyback's completion, so the market will be watching for further updates on execution and any additional supply-reduction measures.
