This Shiba Inu Rival Rallies 20% Ahead of an Important Announcement: Details
TL;DR
- Floki Inu (FLOKI) saw a 20% rise in the last 24 hours, boosting its market cap to around $2.6 billion and reclaiming the fifth position in the meme coin sector.
- Increased trader interest, upcoming announcements, and a significant token burn by the Floki DAO might have contributed to the price surge.
FLOKI on the Move
The meme coin sector experienced a substantial revival in the past 24 hours, with multiple assets of that type being well in the green. The dog-themed Floki Inu (FLOKI) is among the best performers, registering a nearly 20% increase on a daily scale.
Its market capitalization briefly jumped to almost $2.7 billion, currently hovering around $2.6 billion. Thus, it became the fifth-biggest meme coin, surpassing the Solana-based Bonk Inu (BONK), whose market cap is approximately $2.5 billion.
FLOKIs latest spike coincides with increased interest from traders. The team behind the project revealed that the asset has become the hottest meme coin on Binances platform as of late, trending above the latest sensation Pepe (PEPE). Shortly after, the token topped the same ranking on OKX, outperforming ETH, PEPE, and BONK.
The ongoing week promises to be quite eventful for Floki Inu. The team said it will release an important announcement today (May 27), while three days the US-based crypto exchange Coinbase will launch FLOKI perpetual contracts.
This type of derivative product in the cryptocurrency market enables traders to speculate on the future price movements of certain digital assets without owning them. Perpetual contracts are similar to traditional futures contracts but have no expiry date. This means people can hold their positions indefinitely as long as they maintain the necessary margin.
The Burning Efforts
Another potential factor that could have contributed to FLOKIs latest rally is the Floki DAOs decision to burn over 15 billion tokens. The vote was passed with an overwhelming majority of 99.84% in mid-May.
Removing a substantial amount of assets from the circulating supply results in increased scarcity and a potential price appreciation (assuming demand remains the same or rises).
Shiba Inu is another popular meme coin that has adopted such a burning mechanism. A week ago, SHIBs burn rate soared by almost 600%, resulting in approximately 10 million assets sent to a null address.
Meanwhile, the price of the self-proclaimed Dogecoin killer is up around 6% on a seven-day scale, while its market capitalization recently crossed the $15 billion mark.
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Text source: CryptoPotato
