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Solana-Based Meme Coin Bonk (BONK) Surges Over 25%
The Solana-based meme coin, Bonk (BONK), has experienced a notable surge, outshining other meme coins in the top 100 cryptocurrencies. Over the past 24 hours, BONK has surged by over 25%, trading at $0.000026, with its market cap surpassing $1.8 billion, overtaking Dogwifhat (WIF), another Solana-based meme coin with a market cap of $1.71 billion.
The daily trading volume of BONK has increased by 155%, reaching around $544 million. However, BONK remains 44% below its all-time high of $0.000047, which it hit on March 4.
Meme Coin Craze Boosts Bonk
Bonk gained popularity in 2023, driven by the meme coin craze, which also boosted Solana’s value. Initially introduced as another dog-themed meme coin, Bonk has expanded its utility to include decentralized finance (DeFi) integration. The project collaborates with cross-chain communication protocols, NFT marketplaces, and various other crypto market ecosystems.
Bonk trading pairs are now available on major exchanges such as Binance, Coinbase, OKX, and Bitstamp.
Token Burn Announcement
The recent price spike of BONK follows a post by BONK DAO, the decentralized autonomous organization overseeing the Bonk project. The post announced a proposal to burn 84 billion BONK tokens (worth $2 million) from its Treasury. These tokens were transferred to the DAO by BONKBot during the second quarter.
“All BONK locked on BonkRewards is now able to vote on community proposals.”
Token burning, the process of permanently removing tokens from circulation, often leads to a decrease in supply. This reduction can create a scarcity effect, potentially increasing demand and driving up the token’s price.
Additionally, whale tracker FishTheWhales reported that whales are buying BONK, further contributing to its price increase.
Broader Meme Coin Rally
Bonk’s price spike coincides with a broader rally in meme coins. Among these, the frog-themed Pepe (PEPE) emerged as the second-best performer, with holders profiting by more than 12% in the last 24 hours. The Ethereum-based token experienced a 42% increase in volume, reaching $1.12 billion, the highest among meme coins.
Other popular meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) also saw gains, rising by 3.9% and 3.11%, respectively. Overall, the meme coin market cap increased to $42.53 billion, marking a 7% rise in the past 24 hours.
Bitcoin and Meme Coins
This rally in meme coins comes as major cryptocurrencies like Bitcoin begin to recover. Last week, Bitcoin (BTC) ended at around $55,850, an 11% decrease from the previous week’s close of $62,775. Significant selling pressure pushed BTC to as low as $53,500 before rebounding to $58,250 and settling at $55,850.
During this downturn, BTC Spot ETFs saw net inflows of $238 million, with cumulative trading volume since their inception standing at approximately $315 billion. Matteo Greco, a Research Analyst at Fineqia International, noted that this decrease in activity should be viewed as a seasonal trend rather than negatively.
“For the first time since their inception, there is a noticeable decoupling between price action and capital flows, indicating that recent price behavior has been driven mainly by trading activity within the crypto-native space,” said Greco.
As of Tuesday, Bitcoin was up over 3% in the past day to $57,515, with 24-hour lows and highs of $55,256 and $57,879, respectively. Bitcoin’s dominance has slightly decreased by 0.26% to 53.64%, indicating increased activity in the altcoin market. The global crypto market cap has risen by 3.4% to $2.12 trillion.
The significant rise in the meme coin market is often linked to Bitcoin’s performance due to its influence on the broader cryptocurrency market. When Bitcoin performs well, it typically boosts investor confidence and interest in alternative coins (altcoins), including meme coins. This effect can create a positive feedback loop, where rising prices attract more investors, further driving up prices.
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