The price of Floki Inu (FLOKI) surged by 10% in the past 24 hours, reaching $0.0002226 10.9% at 5:05 pm GMT.
This surge occurred on the back of a nearly 90% increase in trading volume.
The sudden rise in price is attributed to growing speculation that meme coins with utility will dominate the current market cycle, with FLOKI positioned as a leading contender.
Utility drives demand
The utility of the FLOKI token lies primarily within the Floki ecosystem.
Token holders can engage in various features such as staking, yield farming, and an NFT marketplace. This functionality has drawn interest from investors looking for meme coins that offer more than just hype.
Bullish announcement fuels price hike
The recent price jump is also linked to a bullish announcement from the Floki ecosystem. The project revealed plans to burn over 15 billion FLOKI tokens on May 22, 2024.
Token burning involves permanently removing tokens from circulation, reducing the total supply and potentially increasing the value of the remaining tokens due to scarcity. This announcement has already had a positive impact on the Floki price, aligning with basic economic principles of supply and demand.
Bitcoin and Ethereum influence
Other market fundamentals are also in favor of the Floki price. The recent strength in Bitcoin, which has reclaimed the $70,000 psychological level, is expected to lead to a rally in altcoins, including meme coins like FLOKI.
Additionally, the increased likelihood of Ethereum ETFs (exchange-traded funds) being approved soon could further boost the market, benefiting Floki Inu.
Overall, the combination of utility within the Floki ecosystem, strategic token burning, and favorable market conditions suggests a promising outlook for the FLOKI token in the near term.
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