Solana’s new meme coin $BONK is smashing all the macro predictions and has increased multi-folds over the last week. In today’s article, we are looking at $BONK and its potential in the Solana ecosystem.
It is the first meme crypto on Solana blockchain and has been responsible for boosting the price of SOL token in the past week. Bonk is the first Solana’s dog coin, with 50% of its total supply airdropped to the Solana community. The idea behind it is that the community wanted to make a fun meme coin, where everyone gets a fair opportunity to participate in the ecosystem and has a very optimistic outlook. They have a vision of making the $Bonk coin as the true community coin to be used across all the DAPPS that are building in the Solana ecosystem. BONK is up by 4335.25% in the last 6 days.
According to Coindesk, “$Bonk, a Shiba Inu-themed token that was issued on Dec. 25, has returned 2,220% to traders in the past week, with a 150% rise in the past 24 hours alone”
According to their one pager, the total supply is set to 100 trillion BONK tokens.
50% of the supply was airdropped to the Solana community, which is further bifurcated as below:
20% of it went to Solana NFT collections (297K individual NFTs)
15% to early OpenBook traders
10% to Solana collectors and artists
5% to Solana developers
Their supply will be distributed as follows
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With the phenomenal rise of BONK, Solana is also reaping its ripple effects. Solana (SOL) price is up 32% over the last 5 days. The liquidity providers in the Solana based decentralized exchanges are also benefiting from the surge of $BONK. As per the data from Orca, a decentralized exchange based on Solana, LP pools that has $BONK are giving out APRs ranging from 600%-north of 999%, which we believe will correct and might reach double digits once $BONK starts attracting bigger investors and the adoption becomes larger.
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<source: Orca>
Everyone in the Solana ecosystem is rooting for their favorite dog coin to grow. As the narrative for Solana is not so good at the moment, we expect $BONK to help the ecosystem to thrive. Also $BONK that are allocations to projects which are leaving Solana are expected to be burned. In a tweet by the $bonk team yesterday, they announced that “The $BONK allocation to DeGods, a total of 500 billion $BONK, has been burned”. DeGods, the No.1 NFT project on the ecosystem, earlier decided to leave Solana and join Ethereum.
We believe that $Bonk is a high risk/high reward coin. It has been on a major runup and could tank heavily at any moment. On the other hand, since the value is very small, it has a lot of room for growth. We would recommend doing your own research before deciding to invest in $Bonk.
With all the negatives surrounding Solana, starting with the FTX fiasco followed by top projects leaving the ecosystem, the Solana community is doing everything they could to bring the attention back. This could be interpreted as the reason for this rally for $Bonk. According to @materialfuture at Dune Analytics, $19,132 has been generated as a fee in the last 14 days. However, the cumulative wallets that hold $BONK has jumped from just 205 wallets on 24th December to 65,977 as of yesterday, which is an astounding rise by any means. This is also supported by an increase in user count by +2028% from 3000 users on 25th Dec to 64,325 users as of yesterday.
Our take is that, the $BONK has started attracting a lot of momentum and their burning mechanism is the propelling factor for their rise. With the $BONK/SOL trading pair seeing a massive 24-hour volume of around $20 million in Orca as well as the backing by a solid ecosystem, this could drive the value of the token in coming days.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.