Blockchain network Ronin, behind Axie Infinity, plans on strengthening its token economy with buybacks starting Sept. 29. Currently, the team will convert $4.5-$5M worth of ETH and USDC into RON, equal to 1.3% of circulating supply, aiming to create deflationary pressure through fees, burns, and buybacks. Market sentiment has surged with RON trading near $0.53 and daily volume exceeding $29M.

The move aligns with Ronin’s broader tokenomic changes, introducing EIP-1559-style gas mechanics earlier this year. The buybacks are seen as part of Ronin’s “homecoming” to Ethereum as a layer-2 chain, aligning holders and builders for long-term growth. The network’s growth through gas usage, game launches, or DeFi activity will directly influence the deflationary effect.

Crypto analyst Hydraze believes tokens recycling revenue into their supply are leading the cycle, with Ronin fitting that theme. Ronin’s $4.5M buybacks starting Sept. 29 have garnered support, with RON rebounding from key levels and showing signs of fresh participation. Technical analysis suggests a positive outlook, with RON consolidating above key EMAs and aiming for a retest above $0.57.

The near-term catalyst for RON is the buyback start date, with traders eyeing $0.60 as the next psychological test. Maintaining above key support levels could lead to further upside momentum, while a drop below could shift pressure back towards $0.50. Traders are closely monitoring price action and volume to gauge market sentiment and potential price movements.

Read more at Yahoo Finance: RON Crypto to Go Parabolic as Ronin Reveals Token Burns: Time to Buy?