Driving the Floki Inu rally was the recently approved proposal to permanently end the existence of 2% of the cryptocurrency's circulating supply. As a result of the voting, almost 90% of FLOKI holders voted for a massive token burn.

In total, over 190 billion tokens will be sent to dead wallet addresses, making them unavailable. At current market prices, this represents the liquidation of over $27.5 million worth of tokens. Supporters believe that this decision was instrumental in strengthening FLOKI's long-term prospects.

The supply shock lit a fire under the meme coin, with buyers reacting instantly and purchasing the coins before their availability dwindled further. As a result, prices have skyrocketed, posting triple-digit percentage gains each week. Social media activity simultaneously erupted around the terms “Floki” and “burn” as interest in the token sparked.

Positive sentiment is also widespread on crypto forums. With buyers still firmly in control, Floki is now targeting a retracement of its all-time high around $0.00034, a high that could fall quickly if momentum continues to build from the fall.

Community activity, reflecting widespread support for the project, has led to fundamental growth in the ecosystem. FLOKI's total locked value, which represents assets deposited in its DeFi protocols, exceeded $400 million this week after previously reaching a record $366 million.

The surge comes as the broader meme coin sector grows and speculative bets return to decentralized exchanges. By the way, leading meme pioneer Dogecoin is also up by triple-digit percentages.

But Floki's supporters hope that the project will not only be a vehicle for short-term speculation, but will also bring real benefits. Its emphasis on user-led governance and community coherence gives it its distinctive features among the meme sector.

However, in the short term, technical signals suggest the possibility of air pockets.

As the relative strength index shows overbought conditions, short-term resistance near $0.00034 could encourage profit-taking. Further parabolic rises expose Floki to the risk of sharper momentum swings.