In Short
- Solana-based meme coin is at an all-time high with a market capitalization of over $472 million.
- The coin has appreciated by a staggering 938 percent in the last 30 days, and nearly a tenth of it (88.7 percent) came in the last week alone.
- It is impossible to precisely predict the future of BONK, going by the past patterns, this could be a turning point in the life of the project.
Almost a full year after the startling airdrop launch, BONK is finally taking off. The Solana-based meme coin is at an all-time high with a market capitalization of over $472 million, as of Wednesday. The coin has risen by over 25 percent in the last 24 hours, as per real-time data on CoinGecko.
The phenomenon plays out in the milieu of the recovering crypto market after an unfavorable month in October. BONK, hosted on Solanum, calls itself the ‘true community coin of web3’ on its website. The project claims to have 649,000 holders across 10 blockchains.
Dodge Coin’s Success In Crypto Market
The token was launched on Christmas of 2022, inspired by Dodge Coin’s success in the crypto market. The meme coin has since inspired little market interest until it started to gain traction by the end of October this year. Over the last 30 days, the coin has appreciated by a staggering 938 percent, and nearly a tenth of it (88.7 percent) came in the last week alone.
In comparison, the two popular meme coins, Dogecoin(DOGE) gained only 12 percent and Shiba Inu(SHIB) gained only 14 percent in the past week. The figures have also beaten broad market crypto indices as well as major cryptocurrencies like Bitcoin and SOL, the native currency of Solanum.
Related Readings: Microsoft Copilot For Windows 11 Gets GPT-4 Turbo and Dall-E 3
BONK Making Up Nearly Half A billion US Dollars In Market Value
As I am writing, the token has moved from US$ 0.00000779 to US$ 0.00000798 over just an hour, making up nearly half a billion US dollars in market value, owing to a total supply of 15 billion BONK. Fifty percent of that (7.5 BONK) was distributed to eligible Solana users on the launch day to kickstart participation, which has paved the foundation of the recent surge.
According to the experts, the positive crypto market sentiment in November has catalyzed the Shibu Inu meme culture and the Bonk army community (as they call themselves) and it was only a matter of time before the fear of missing out (FOMO) kicked in.
Notably, Binance has introduced perpetual futures tied to BONK in its platform with up to 50x leverage. The instrument will allow bearish traders to step in and participate in the market price more effectively. Perpetuals, as they are sometimes called, allow speculation at a scale of several folds compared to the spot market and come with no expiry date.
In a similar development in May this year, the HIFI token, the native cryptocurrency of decentralized lending and borrowing platform Hifi, had more than tripled in market capitalization in the first half of the month, only to see it plummeting to a quarter of its highs after perpetual futures tied to the coin has been introduced on Binance.
Similarly, the PEPE meme coin went through the roof from zero to nearly $1.5 billion in market capitalization before the PEPE perpetual futures put an end to the run on May 5 crashing it down back to $380 million.
Though it is close to impossible to precisely predict the future of BONK, going by the past patterns, this could be a turning point in the life of the project.
Related Readings: Binance Founder Changpeng Zhao Declares ‘Alt Season’ In Response To Jim Cramer
