- FLOKI worth over $770 million was burned in the last seven days.
- The memecoin was down over 19% at the time of writing and the numbers looked bearish.
FLOKI witnessed a major price correction in the last 24 hours, with its value plummeting by double digits. However, the recent setback did not stop the blockchain from burning a significant number of tokens in recent days.
Will the memecoin’s high burn rate help it recover from its losses quickly?
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 cap of over $1.7 billion.
The drop in value also negatively impacted the memecoin’s social metrics. AMBCrypto’s analysis of Santiment’s data showed that FLOKI’s social volume fell last week.
Furthermore, the weighted sentiment also moved into the negative zone, meaning that bearish sentiment surrounding the token was dominant in the market.
Source: Santiment
In the meantime, FLOKI had a trick up his sleeve that could help turn the situation around. According to his latest tweetthe memecoin had burned through tokens worth more than $770 million in just a week.
FLOKI’s tweet stated:
“A week after we announced that $3.2 million worth of FLOKI tokens had been burned due to strong utility demand, another 3,743,258,666 FLOKI tokens, worth $772,234, were burned due to the strong demand for FLOKI’s utility products. making FLOKI perpetually deflationary compared to other memes like DOGE, PEPE, SHIB, BONK, and WIF.
A high burn rate reduces the circulating supply of a crypto, which in turn causes an increase in demand. This generally has a positive impact on the price as the value of the crypto increases. But for FLOKI, things were more complicated.
Bears refuse to let go
AMBCrypto’s analysis of Santiment’s data revealed that the meme coin’s MVRV ratio plummeted sharply last week. Currency inflows also spiked a few times, meaning selling pressure was high.
These two statistics pointed to a further decline in the memecoin’s price in the coming days.
Source: Santiment
How many Worth 1,10,100 FLOKIs today
To check if a further downtrend is brewing, we next looked at FLOKI’s daily chart. According to our analysis. The MACD supported the sellers and showed a bearish crossover.
Nevertheless, the Money Flow Index (MFI) remained in favor of the bulls as it registered an upswing, indicating a trend reversal.
Source: TradingView