Traders are flocking to this altcoin, pushing its price to triple digits in the last 24 hours. It probably signals a trend reversal in Solana price.
Great interest in this altcoin
Bonk, a meme token modeled after the Shiba Inu that was launched on Dec. 25, is growing rapidly, and some traders believe the token’s trading volume potentially boosts Solana’s price. According to data from CoinMarketCap, SOL price is up 34% in the last 48 hours and Bonk is up 117% in the last 24 hours. As the broader crypto market remains under pressure, traders hope Bonk can present new opportunities during the crisis.
According to the project’s website, Bonk is the first dog token on the Solana blockchain. Initially, 50% of the token supply was airdropped to Solana users with the mission to eradicate the toxic Alameda-style token economy. The airdrop generated more than $20 million in trading volume, according to Solana decentralized exchange Orca.
High return on income
Liquidity providers (LPs) expect to benefit from interacting with Bonk, and on January 4, LPs earn over 999% APR, which is much higher than the popular SOL/USD Coin pair.
While high returns don’t always remain high, current rates indicate a large market demand for Bonk. Bonk burned the supply of 1 billion on January 3, along with the increase in demand.
Solana (LEFT) bounces next to Bonk
Blockchains like Solana benefit from increased usage. After the collapse of FTX, Solana saw multiple projects leave the ecosystem. cryptocoin.com As previously noted, Dust Labs is moving two of the top performing Solana NFT projects (DeGods and y00ts) to Ethereum and Polygon with the goal of expanding their adoption. The news was announced on the DeGods and y00ts Twitter pages on Dec. 25, and both are expected to be officially linked to Ethereum and Polygon, respectively, in the first quarter of 2023. On January 4, Solana saw an 18.6% increase in 24-hour rates and a 15.8% increase in 24-hour active users per day.
In addition to fees and daily active user increases, the SOL price rose above $14 on January 4 for the first time since December 14. Some crypto market participants attribute Bonk’s growth to Solana’s price action. While Bonk is only a meme token, the growing demand is a positive sign for the Solana blockchain. This is a sign that Vitalik Buterin can fulfill his wish for Solana to have a ‘chance of improvement’.