The Possible Reasons Floki Inu (FLOKI) Skyrocketed 300% in a Week
TL;DR
Floki Inu’s price jump follows the DAO’s decision to burn billions of assets.
FLOKI’s rally coincides with the overall growth of the crypto market and the meme coin niche.
Burning Billions of FLOKI Tokens
Floki Inu (FLOKI) has been among the best-performing cryptocurrencies as of late, experiencing a 300% price increase in a week and a 430% surge on a monthly scale. It is currently the sixth biggest meme coin, with a market capitalization of almost $1.5 billion.
One factor possibly contributing to the impressive spike could be the decision of the Floki DAO to burn more than 190 billion tokens. The stash, worth approximately $28 million at ongoing rates, will be destroyed in the following seven days.
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
Removing a huge chunk of assets from circulation can positively impact the price of FLOKI since it would make it scarcer and more valuable (assuming demand stays the same or increases). Another meme coin that has adopted a similar burning mechanism is Shiba Inu. As CryptoPotato reported, SHIB saw its burn rate exploding by 30,000% at the end of last week.
The decentralized autonomous organization also claimed the move could ensure “long-term security and stability” for the Floki Inu ecosystem by eliminating the risks of these assets being exploited and dumped.
Meme Coin Frenzy
Other conditions that might have fueled FLOKI’s latest rally are the overall resurgence of the crypto market, especially the booming meme coin cohort. Shiba Inu (SHIB) and Dogecoin (DOGE) are up by double-digits today, with their market caps hitting two-year peaks.
Pepe Coin (PEPE), Bonk Inu (BONK), and dogwifhat (WIF) have witnessed even greater increases, reaching all-time high prices.
While trading meme coins can be exciting and offer the chance of substantial profits, it also carries a lot of risks due to the infamous volatility of the sector. Take a look at our latest video to check the most common mistakes that successful traders need to avoid when dealing with assets of that type:
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Filed under: Bitcoin - @ March 5, 2024 9:25 am