- FLOKI worth more than $770 million was burned in just the last seven days.
- The memecoin was down by over 19% at press time, and metrics looked bearish.
FLOKI witnessed a major price correction in the last 24 hours as its value plummeted by double- digits. However, the recent setback did not restrict the blockchain from burning a substantial number of tokens in the last few days.
Will the memecoin’s high burn rate help it recover quickly from its losses?
FLOKI is burning
According to CoinMarketCap, the memecoin’s value plummeted by more than 19% in the last 24 hours alone. At the time of writing, the memecoin was trading at $0.0001757 with a market capitalization of over $1.7 billion.
The dip in value also had a negative impact on the memecoin’s social metrics. AMBCrypto’s analysis of Santiment’s data revealed that FLOKI’s social volume dropped last week.
Additionally, its weighted sentiment also went into the negative zone, meaning that bearish sentiment around the token was dominant in the market.
Source: Santiment
In the meantime, FLOKI had a trick up its sleeve, which can help it turn the situation around. As per its latest tweet, the memecoin had burned tokens worth more than $770 million in just a week.
FLOKI’s tweet mentioned,
“A week after we announced that $3.2 million in FLOKI tokens was burned due to strong utility demand, an additional 3,743,258,666 FLOKI tokens, worth $772,234 at the time of writing this, was burnt in the past week alone through strong demand in FLOKI’s utility products, making FLOKI perpetually deflationary compared to other memes like DOGE, PEPE, SHIB, BONK, and WIF.”
A high burn rate decreases the circulating supply of a crypto, in turn causing a rise in demand. This generally has a positive impact on the price as the crypto’s value goes up. But things for FLOKI were more complicated.
Bears are refusing to let go
AMBCrypto’s analysis of Santiment’s data revealed that the meme coin’s MVRV ratio plummeted sharply last week. Its exchange inflow also spiked a few times, meaning that selling pressure was high.
These two metrics hinted at a further drop in the memecoin’s price in the coming days.
Source: Santiment
How much are 1,10,100 FLOKIs worth today
To check whether a further downtrend is on its way, we then took a look at FLOKI’s daily chart. As per our analysis,. The MACD supported the sellers as it displayed a bearish crossover.
Nonetheless, the Money Flow Index (MFI) remained in bulls’ favor as it registered an uptick, hinting at a trend reversal.
Source: TradingView
