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The address used for burning has been BA-1, functional on Ethereum and BNB Chain.
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Over the last 24 hours, FLOKI has seen 16 burned transactions.
The Floki memecoin (FLOKI) price has benefited from an aggressive reduction in circulating supply, thanks to its burning mechanism. Since November 9, the price of FLOKI has increased from 0.00014 to almost 0.00030. This has a relative coincidence with the increase in burning that occurred at the end of October and beginning of November, as revealed by CryptEye data.
The data show that the burning of memecoins FLOKI has recently increased, but that began radically between February and March 2024. Thus, the circulating supply of FLOKI has been reduced to 4.12 billion tokens, after 5.877 million were burned at the time of writing.
The existing supply of FLOKI is 10 billion, which means that more than 50% of minted tokens were sent to the burning address, also called dead address or dead address, named BA-1 (0x000000000000000000000000000000000000dead) of the Binance-smart-chain/” target=”_blank” rel=”noreferrer noopener”>BNB Chainwhere other network tokens are also burned.
Floki is one of the most well-known memecoins in the Cryptocurrency community. Fountain: Cryptoeye
In just the last 24 hours, some 16 burnings of the FLOKI memecoin have been carried out with variable amounts between USD 1,500 and USD 2. Although they are low amounts, the frequency of these burnings means that the rate of disappearance of the supply is increasing.
Floki token burning has become more aggressive since early 2024. Source: Cryptoeye
Likely due to these aggressive token burns, the approaching cryptocurrency bull rally, and memecoin fever, Floki price has seen a solid rise since November 10. As CriptoNoticias reported, the Shiba Inu memecoin has also experienced big burns recently.
Just yesterday, Coinbase Assets, the exchange’s X account that announces upcoming assets to be listed, announced that Floki would have support within the US platform. This announcement helped Floki’s price rally to almost $0.00030. At the time of writing, Floki is up about 6% in one day.
What is a token burn address?
The Burn Address (BA-1), represented as “0x00000000000000000000000000000000000dead”, is an address on the Ethereum network, functional on the BNB Chain, where tokens are sent to be permanently taken out of circulation. This means that any token sent there cannot be recoveredwhich helps reduce its total supply in the cryptocurrency market.
The price of Floki has benefited from this burning mechanism because the lower the circulating supply, the greater the scarcity, as the price and supply dynamics of Bitcoin teach.
The main purpose of these addresses is to create deflationary pressure on a cryptocurrency, which can increase its value by reducing the amount available. These burning addresses are preferably used by those tokens whose supply is unlimited, inflationary. It is also used by developers of tokens whose supply is fixed, but too large.
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