TLDR
- BONK, a Solana-based meme coin, has surged over 20% in price in the last 24 hours.
- The BONK DAO proposed burning 84 billion tokens from its treasury.
- The overall meme coin market is rallying, with Pepe and others also seeing gains.
- Increased trading volume and options market activity are contributing to BONK’s rise.
- Bitcoin and the broader crypto market are recovering from recent lows.
BONK, a Solana-based meme coin, has emerged as the top performer among the top 100 cryptocurrencies, surging over 20% in the last 24 hours.
As of the latest data, BONK is trading at $0.00002662, representing a 25.28% increase over the past day. This surge has pushed BONK’s market capitalization to $1.83 billion, ranking it 45th among all cryptocurrencies.
The token’s trading volume has also seen a significant boost, rising by 158.75% to reach $558.26 million in the past 24 hours.
Several factors are contributing to BONK’s impressive performance. One of the main drivers is a recent proposal from the BONK Decentralized Autonomous Organization (DAO) to burn 84 billion tokens from its treasury. This proposal aims to decrease the total supply of BONK tokens, potentially increasing their value.
The proposed burn would involve destroying 83,917,950,070 BONK tokens, which is equivalent to all the BONK acquired by the DAO through its revenue-sharing agreement with BonkBot in the second quarter of the year.
This isn’t the first time BONK has implemented such a strategy. In April, the BONK DAO authorized the burning of 278.39 trillion BONK tokens, a move that received overwhelming community support with a 99.9% approval rate.
These token burn initiatives demonstrate the project’s commitment to managing its supply and potentially increasing token value.
The meme coin market as a whole is experiencing a rally. Following BONK’s lead, other popular meme coins are also seeing gains. Pepe (PEPE), a frog-themed token, has risen by 12% in the last 24 hours.
Even more established meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) have seen increases of 3.9% and 3.11%, respectively.
BONK’s rise is also reflected in the derivatives market. Data from Coinglass shows that the open interest in BONK options has increased by 33.60% to $10.14 million.
This increase in options market activity suggests growing interest from derivative traders. Additionally, the long/short ratios for BONK are higher on major exchanges like Binance and OKX, indicating that more traders are betting on the price to go up rather than down.
The surge in meme coins comes as the broader cryptocurrency market shows signs of recovery. Bitcoin, the largest cryptocurrency by market cap, has rebounded from its recent lows below $55,000 and is currently trading above $57,000.
This recovery in Bitcoin’s price often has a positive effect on the entire crypto market, including meme coins.
Interestingly, the recent market movements have shown a decoupling between Bitcoin’s price action and the flows of Bitcoin Spot ETFs. Despite the market downturn last week, Bitcoin Spot ETFs saw net inflows of $238 million.
This suggests that the recent price behavior has been driven mainly by trading activity within the crypto space rather than institutional investments through ETFs.
The global cryptocurrency market capitalization has risen by 3.4% to $2.12 trillion, indicating a broad market recovery. This overall market growth provides a favorable environment for meme coins like BONK to thrive.
