BONK Tumbles 66% – Can The ‘Dogecoin Killer’ Live Up To Its Name?
The previous 24 hours have been impressive for the cryptocurrency market, which is seeing a broad-based rebound on numerous fronts. Despite this development, as evidenced by a combined crypto market valuation increase of...
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The previous 24 hours have been impressive for the cryptocurrency market, which is seeing a broad-based rebound on numerous fronts.
Despite this development, as evidenced by a combined crypto market valuation increase of 3.4% to $880 billion as of Thursday, Solana’s newly minted canine-centered memecoin BONK has experienced a huge price decline relative to its competitors.
As of writing, BONK is trading at $0.000000968754, and down a whopping 66% in the last seven days, data by Coingecko show. In the last 24 hours alone, BONK has lost 1.6% of its value.
BONK Succumbs To Bearish PressureDespite its initial success, the memecoin BONK has had a difficult go of it in the weeks following its launch. The token, which appeared out of nowhere and quickly rose to rank among the top 200 cryptocurrencies in terms of market value, was hit hard by a significant bearish trend around Thursday afternoon.
It has significantly outpaced the market since the beginning of the year, on the heels of a retail buy-up that pitted the dog-themed cryptocurrency against existing meme coin heavyweights Dogecoin (DOGE) and Shiba Inu (SHIB).
There have been claims of wealthy investors purchasing millions, if not billions, of the viral coin BONK during the past few of weeks. Consequently, Thursday’s drop is a shock to investors with high aspirations for the cryptocurrency.
This week, BONK became the latest meme token to attract the attention of traders with a huge 3,300% increase. Following that, the developers of the cryptocurrency burnt their remaining tokens, which represented 5% of the whole BONK cryptocurrency supply.
Dogecoin Rival Leans On Solana Community’s SupportBONK was introduced on December 25, 2022, and its price has since increased by a four-digit proportion. Additionally, the token dominated social trading platforms. Analysts attributed the new token’s success to the Solana community.
The token’s value has been struggling to bounce back from its 66% loss in the face of continued negative growth rate, which caused it to give up some of the gains it made over the previous weeks.
When we zoom in on BONK’s growth during the past two weeks, we see that it has increased by almost 1,000% throughout this period.
All of these occurrences have created a frenzy about the Solana-based token. They also increase the optimism of token holders that the crypto will gain credibility and cease to be a fad.
Nevertheless, as a result of the recent negative outburst, the fully diluted market capitalization has decreased by 32.61% to $102 million, while the 24-hour trading volume of the altcoin has grown by a staggering 200% to $36 million.
This is direct evidence that a substantial number of SOL whales are selling their BONK assets in order to generate large profits.
-Featured image by Decrypt
Why this matters
This altcoin story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
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