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BONK, a meme coin, has managed to register quadruple-digit gains in 7 days, with a 1,600 percent spike in the last week. But what exactly is BONK, and why is it marching to the moon? Follow along to find out.
At a time when the entire digital asset industry is reeling from the harsh crypto winter, you did think it was impossible for a coin to post quadruple-digit gains in just seven days. However, a meme coin called BONK has done just that, with a 1,600% increase in the last week. But what exactly is BONK, and why is it marching to the moon?
BONK: What exactly is it?
BONK, Solana first dog-inspired meme coin, was released on December 25. BONK is described in the project whitepaper as a Solana "community coin" that will be used "across the many great DApps" on the network. In this regard, the coin has already seen 50 network integrations in the last two weeks.
The coin is also described in the whitepaper as a project "for the people and by the people." This ideology was exemplified by BONK airdrop, which distributed half of the coin 100 trillion supply to the Solana community. To begin, 20% of the supply was airdropped to Solana non-fungible token (NFT) holders. Another 10% of the supply was allocated to Solana blockchain NFT creators and artists.
Finally, 15% of the supply was airdropped to Openbook early traders, while the remaining 5% was distributed to Solana Developers. On the Solana network, Openbook is a newly launched decentralized exchange. It will take the place of Serum, Solana SBF-backed decentralized exchange.
According to the whitepaper, the main reason for the launch of BONK was to dispel the negativity surrounding Solana and restore liquidity to the network decentralized exchanges. Solana has been in a state of shock since the FTX debacle. SOL, the network native cryptocurrency, lost 97 percent of its value in 2022, with the FTX crash being one of the primary causes.
However, BONK was launched to turn things around, and it has done a pretty good job so far.
BONK skyrockets by 4,000%, dragging SOL along for the ride
BONK increased by 4,438 percent from $0.0000001078 on December 30 to $0.000004892 on January 5. To put this in context, on December 25, some Solana app developers received 5 billion BONK. This stockpile was worth less than $1,000 at the time. According to a Decrypt report, these coins were worth nearly $122,000 at the peak of last week surge.
The hype surrounding the massive airdrop, which saw almost the entire community receive a massive stack of BONK coins, was one of the major reasons for the spike. This was exacerbated by a series of token burns, which resulted in further price increases.
For example, on January 3, the network announced a 1 billion BONK token burn. The following day, the project announced that all tokens assigned to projects leaving Solana would be burned as well. In this regard, DeGods 500 billion BONKs would be permanently removed. Finally, BONK announced early this morning that the 5 trillion tokens assigned to the BONK Team would be destroyed. This could be the cause of BONK massive price increase.
Furthermore, the BONK spike has provided buoyancy for Solana. SOL, the blockchain native cryptocurrency, has increased by nearly 45 percent in the last seven days.
BONK has experienced tremendous growth, but will it be sustainable?
There no telling how much and how quickly meme coins can rise or fall. BONK growth is currently out of control. On December 24, for example, only 205 wallets contained BONK. However, by January 5, this figure had risen to 100,000 users. Continued burn activity could push the token price even higher.
BONK was trading at $0.000001992 at the time of writing, down 54% in the previous 24 hours. However, the coin was up 1,651 percent in the last seven days. And, because the token value is so low, there is room for growth. However, meme coins are notorious for their wild volatility, so do your research and only invest what you can afford to lose completely.