Floki Inu price declining by 15% might have its investors, or the lack thereof, to thank for
|- Floki Inu price has been consolidated for nearly a month, trading at $0.00003378.
- FLOKI holders have been absent on-chain as the active addresses ratio stood at 0.45%.
- Floki Inu will eventually lose its only upper hand of being a meme token as investors move away from the trend.
Floki Inu has kept its head down, charting no growth but simply moving sideways for the last month. While investors are hoping this is the build-up before FLOKI marks a recovery to yearly highs, the meme coin might not be able to do so primarily because these very investors are the reasons for the lack of a rally.
Floki Inu price needs a push
Floki Inu price has been consolidated within the $0.00004112 and $0.00003235 range since mid-March. The upper and lower range has been tested as resistance and support levels multiple times now, but the meme coin is still not observing any growth despite the broader market still maintaining a bullish tone.
FLOKI/USD 1-day chart
One of the reasons behind this is the fact that Floki Inu holders lack genuine commitment. While broader market cues do have a major impact on price action, investor participation plays an equally important role. And in the case of Floki Inu, this participation has been significantly low.
The active addresses ratio has been hovering around the 0.23% to 0.45% range. This metric shows the number of active addresses on the chain in a day in comparison to the total number of addresses with a balance in existence.
While a 5% range is typically observed even for large market cap tokens, anything below 1% suggests a lack of earnestness at the hands of investors.
Floki Inu active address ratio
The only spike noticed in this regard is during broader market rallies that pushed FLOKI’s price up as well. This further suggests that altcoin holders only become active when there is an incentive, i.e., they are only in it for the money.
This is also verified by the fact that during times of relatively lower volatility, Floki Inu’s network growth declines. The network adoption reduction indicates that the number of new addresses forming on the network is low due to the project noting no traction.
Floki Inu adoption
Thus, the only driving factor when it comes to meme coins is the moment when either Dogecoin, Shiba Inu or Elon Musk are trending or when the rest of the market led by Bitcoin is painting green on the charts. However, eventually, the meme coin hype will die out, and the likes of Floki Inu could suffer at the hands of its own investors if the participation stays low.
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