FLOKI worth $2.4 trillion staked in 3 months: What’s going on?
- The staked amount was nearly 25% of FLOKI’s circulating supply.
- Over $350 million worth of TOKEN has been staked.
More than $2 trillion worth of Floki [FLOKI] tokens have been deposited on the platform’s staking program in less than three months since it went live.
Users stake FLOKI for yields
The staked amount equated to nearly 25% of FLOKI’s total circulating supply, meaning that a sizable chunk of the meme coin now lies off-limits for market traders.
The mad rush to stake coins was driven by Floki’s new asset tokenization platform TokenFi [TOKEN]. The sister project was launched to capture a slice of the growing industry which involves representing real-world assets as tokens on a blockchain.
The market was anticipated to expand to $16 trillion by 2030.
When users stake their FLOKI tokens, they earn TOKEN as a reward. In fact, more than half of TOKEN’s supply was reserved for those who stake their FLOKI tokens for a minimum duration.
The longer the staking duration, the higher the annual percentage yield (APY) earned. As of this writing, the staking APY for three months was 28.66%, increasing to as much as 91% for a locking period of four years.
TOKEN also gets locked up
To multiply their yields, users were seen depositing their TOKEN holdings into a separate TokenFi staking program.
According to latest stats analyzed by AMBCrypto, over $350 million worth of TOKEN has been staked, accounting for more than 24% of the coin’s circulating supply.
Like its sister coin, TOKEN also appealed to users because of the high rewards. The staking APY for locking TOKEN for four years was nearly 79%.
Prices tell a different story
Though both assets scored high on the staking front, the market value didn’t seem to capture this rise.
FLOKI lost as much as 21.22% over the past month and around 11% since the start of 2024, according to CoinMarketCap.
How much are 1,10,100 FLOKIs worth today?
TOKEN narrated the same story, as it too dropped more than 21% over the month.
While it was still early days, the TokenFi factor had the potential to bring a significant chunk of FLOKI’s liquid supply into staking. This could also help in reducing the asset’s volatility, the infamous label attached to meme coins.