Why is FLOKI down 12% in a bull market?

• FLOKI’s price dips despite the recent surge in price and interest.
• Activity on the BNB network declines, however, TVL continues to grow.

Floki Inu [FLOKI], a notable player in the memecoin sector, faced a significant setback as its token price experienced a sharp decline. Over the past 24 hours, FLOKI saw a drop of 11.53%, accompanied by a 12.72% reduction in trading volume, indicating a potential loss of interest among investors.

Are whales involved

This sudden price decline followed a period of substantial growth, raising questions about the factors influencing FLOKI’s market dynamics. Notably, recent whale behavior could be a key contributor.

According to data from lookonchain, a newly created cryptocurrency wallet executed a substantial withdrawal of 28.19 billion FLOKI tokens, equivalent to $4.29 million, from the Binance exchange.

This significant movement has caught the attention of the cryptocurrency community, prompting discussions about its potential impact on the market and fueling analyses on the motivations behind such a substantial transaction.

Source: X

Despite being a prominent memecoin, FLOKI has faced challenges in maintaining its market cap compared to new entrants like PEPE and BONK.

The memecoin sector, which recently experienced a surge in interest, saw these newcomers surpassing FLOKI in market cap, signaling a shift in investor preferences.

State of BNB

The declining appeal of Floki could have broader implications, particularly for the BNB network. The memecoin was originally launched on the Binance Coin[BNB] network. A decline in interest in its most popular memecoin could impact BNB negatively.

The reduced activity and transactions on the BNB network suggest a potential negative impact resulting from FLOKI’s diminishing popularity.

Realistic or not, here’s FLOKI’s market cap in BTC’s terms

The declining activity on the BNB network posed a potential negative impact, signaling reduced engagement and transactions. A less active network may lead to decreased liquidity, slower confirmation times, and a general erosion of the ecosystem’s vibrancy.

Source: Artemis

The price movement of BNB itself was noteworthy, standing at $418.66 at press time, experiencing a modest 0.18% dip in the last 24 hours.

Source: Santiment