Canine-themed meme coin Floki Inu (FLOKI) has barked back to life over the last week, posting eyebrow-raising gains exceeding 300% as excitement builds around a community initiative to burn tokens. The fiery price action even saw FLOKI spike another 50% in just the last 24 hours.

TLDR

Floki Inu (FLOKI) token price surges over 50% in 24 hours, up 336% in last week
Community votes overwhelmingly to burn 2% of token supply, removing 190 billion FLOKI
Social volume and positive sentiment spike amidst token burn proposal
FLOKI ecosystem Total Value Locked tops $400 million after hitting record $366 million
Technical indicators in overbought territory on daily chart suggest potential for pullback

Driving the rally was a recently approved proposal to permanently remove 2% of the cryptocurrency’s circulating supply from existence. The unprecedented vote saw nearly 90% of FLOKI holders vote in favor of the massive token burn.

IT’S OFFICIAL: FLOKI DAO PASSES VOTE TO BURN 190,918,585,431.84 FLOKI TOKENS

The #Floki DAO has voted in favor of burning 190,918,585,431.84 $FLOKI tokens. At the current market value, this is worth over $24 MILLION.

In line with the decision of the Floki DAO, the tokens will… pic.twitter.com/uGu0XFU5p9

— FLOKI (@RealFlokiInu) March 2, 2024

In total over 190 billion tokens are set to be sent to dead wallet addresses, eliminating them from availability. At current market rates that reflects an elimination of over $27.5 million worth of tokens. Proponents view the dramatic burn as instrumental for bolstering FLOKI’s long-term prospects.

The supply shock lit a fire under the meme coin, with buyers stepping over themselves to accumulate tokens before availability tightens further. Prices exploded as a result, posting triple-digit percentage gains week-over-week. Social media engagement concurrently erupted around the terms “Floki” and “burn” as interest in the token erupted.

Positive sentiment appears pervasive on crypto forums as well. As buyers remain firmly in control, Floki now flirts with reclaiming its all-time high around $0.00034 – a high water mark that could quickly fall if momentum continues building post-burn.

Signifying deep grassroots support for the project, the community activity translated into fundamental ecosystem growth. FLOKI’s total value locked – representing assets deposited into its DeFi protocols – crossed $400 million this week after previously notching a record $366 million.

The surge comes as the wider meme coin sector catches fire, with speculative bets returning across decentralized exchanges. Leading meme pioneer Dogecoin has similarly rallied by triple-digit percentages, aided by the risk-on environment.

But Floki backers hope that beyond acting as a vehicle for short-term speculation, the project can drive real utility. Its emphasis on user-led governance and community alignment gives it distinguishing characteristics amidst the meme sector.

Nonetheless in the near-term, technical signals suggest the possibility of air pockets.

With the Relative Strength Index showing overbought conditions, short-term resistance around $0.00034 could spur profit-taking. Further parabolic rises place Floki at risk of more violent momentum swings.

The post Floki Token Price Explodes 50% Over 24 Hours on Burn Plan appeared first on Blockonomi.

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Filed under: Bitcoin - @ March 4, 2024 11:12 am