A meme coin project launched in Solana has gained over 2,500% since its recent launch. What is interesting is that as the altcoin price continues the rally, it also drives the Solana price.
This altcoin, which has just been released, continues to rally
Social media started this week by talking about Bonk (BONK), a Solana-based meme coin. The dog-themed cryptocurrency was launched on Christmas Day and has since gained close to 2,500%. What is curious here is that the token has been launched on Solana, which has been struggling for the past few months. In the past month, we’ve seen multiple high-end projects escaping Solana and repeated outages causing major problems. This means that Bonk (BONK) made a risky choice to start with.
However, while still largely on the decline, Solana has rebounded somewhat in conjunction with Bonk’s rise. After falling as low as $8 last week, it rose again above $13 on Tuesday. Looking at Coinglass data, close to $7 million in short positions were liquidated. That’s the biggest purge since FTX crashed in November.
The excitement around Bonk arose when 50% of the total supply was airdropped. The project team’s plan worked. Bonk currently has a market cap of $120 million and follows the meme coin playbook perfectly.
Why is Bonk rising?
Like any meme coin, it’s hard to pinpoint exactly how Bonk achieves this. It really depends on marketing and luck. BONK is constantly trending on Twitter, with some Solana projects integrating Bonk as a payment token. But what makes it so extraordinary is that the rise comes at a time when the market as a whole is in decline, not just for Solana.
In the past year, we have seen interest rates rise and liquidity withdrawn from the market as risk markets collapsed. There is nothing further from the risk spectrum than meme coins and as a result they have been craters. Check out the movements of SHIB and DOGE prices in recent months:
What’s next for Bonk?
It should be noted that Bonk, like any meme coin, is very dangerous. The project has no function, which means it will likely drop to zero in the long run. According to analyst Dan Ashmore, meme coins like Bonk that suddenly hit the market are not a good choice. It’s also important to remember that this rally came during Solana’s downfall. cryptocoin.comIn this article, we have included what you need to know about Bonk Inu.