Meme coins have continued to capture the attention of investors lately as the crypto super cycle appears to be intensifying following Donald Trump’s victory in the US presidential election.

The latest token to experience a significant rise has been FLOKI as rumors that it would be listed on two major crypto exchanges – Kraken and Coinbase – were finally confirmed on Thursday.

FLOKI is a dog-themed token that was inspired by the popular Shiba Inu dog and is a reference to the popular “Vikings” TV series.

In the past month, its price has surged by 70% and its market cap has moved from $1.4 billion to $2.4 billion. Meanwhile, trading volumes in the past 24 hours stand at nearly $800 million as per data from CoinMarketCap, representing approximately a third of FLOKI’s aggregated market value.

floki market cap last 30 days
FLOKI 30-day Market Cap chart – Source: CoinMarketCap

FLOKI’s identity is deeply rooted in pop culture, drawing inspiration from the Viking-themed warrior dog associated with Elon Musk.

This clever branding has resonated particularly well with the “degen” crypto community, which is mostly known for embracing high-risk assets and passionate community involvement.

Unlike traditional cryptocurrencies that derive value from specific technological innovations or use cases, FLOKI’s worth is primarily driven by market sentiment and a loyal fan base.

Coinbase and Kraken Listings Will Open Up Floods of Liquidity for FLOKI

The token’s listing on Kraken and Coinbase opens up a flood of liquidity from US investors primarily who will now be able to trade the FLOKI/USD pair on both exchanges. Meanwhile, Kraken’s Canadian access will also have access to the digital asset from now on.

In the 24 hours following the announcement, trading volume surged nearly 100% while the token’s price initially increased by 15%. Floki currently ranks #49 in the CoinMarketCap list of most valuable cryptocurrencies.

“This listing marks a HUGE milestone in Floki’s journey as it makes it a lot easier for users to get access to FLOKI. It also further legitimizes Floki by making it clear that the biggest and most respected entities in the space recognize Floki and our vision to be the world’s most known and most used cryptocurrency,” Coinbase commented on an X post that confirmed the listing.

Coinbase emphasized that they plan to focus on the ERC-20 version of the token initially and will progressively roll out support on other blockchains as demand evolves. FLOKI is also available to be traded on the Binance Smart Chain and the token has been audited by CertiK.

This measured approach follows the exchange’s recent trend of adding meme coins like Pepe (PEPE) and Dogwifhat (WIF), which have also experienced substantial price increases shortly after being listed.

Being listed on top centralized exchanges like Coinbase or Kraken means that the token will receive more visibility as well.

Institutional Investors Are Taking a Second Look at Meme Coins

Donald Trump’s successful bid for a second term earlier this month propelled the value of digital assets to new records. This trend benefitted the meme coin space as more liquidity was injected into the industry as a whole in hopes that the President elect’s administration will foster a constructive environment for the digital asset sector.

Other meme coins have even delivered triple-digit price increases in the past 30 days including Dogecoin (DOGE), Bonk (BONK), and Peanut the Squirrel (PNUT). Although none of these tokens have any kind of practical value or generate cash flows, they have become popular among crypto enthusiasts primarily amid their ability to build communities and unite people.

Institutional investors have taken notice of the meme coin phenomenon. DWF Labs recently launched a $20 million investment fund focused entirely on digital assets in this space with robust community support.

Andrei Grachev, managing partner at DWF Labs, described meme coins as “a powerful cultural force within the crypto landscape, often uniting communities around shared humor and creativity.”

The Risks of Investing in Meme Coins Should Not be Overlooked

The crypto market is well known for its volatility and the meme coin space is even worse as liquidity tends to be lower and the chances of running into projects that are fundamentally fraudulent schemes is high.

In the case of FLOKI, the risk of a rug pull isn’t as high as other, smaller meme coins. The token has been around for three years now and its number of unique holders exceeds 80,000 wallets. Meanwhile, the largest 10 holders hold less than a third of the entire token’s supply.

That said, this does not mean that investing in FLOKI is free of risks. Market volatility is still a huge risk factor to consider as the value of meme coins can fluctuate wildly in relatively short periods. Even the largest meme coins like Floki and SHIB are extremely volatile.

Experts recommend that investors only devote money that they can afford to lose to this type of financial asset and to be patient as market cycles can change quickly and “crypto winters” tend to last at least one to three years.

Where are FLOKI and Meme Coins Headed?

Increased institutional interest and positive regulatory developments could play a crucial role in FLOKI’s future trajectory.

Favorable crypto policies could make these short-term upticks sustainable in the midterm. However, it is worth noting that the latest hype may have already priced in many of these tailwinds.

The sudden rise of FLOKI alongside the overall explosion that the meme coin space has been experiencing in recent days highlights the dynamic nature of the crypto market and its susceptibility to certain events and changes in the market’s sentiment.

Also read: Where to Buy Floki Inu 2024 Guide

As the impact of these listings continues to fully unravel, investors are probably speculating which assets will be listed next to get on board before they rally like FLOKI.

However, investors should proceed with caution and make sure that they fully understand the risks of investing in meme coins and the importance of performing thorough research and adopting robust risk management policies.

The token’s future will likely be determined by its ability to maintain strong community engagement and keep securing strategic listings.