“Low-unit bias, demand on Coinbase, frenzied community trading activity and BONK’s standing within the Solana ecosystem are positioning it for more growth ahead, traders say.”, — write: www.coindesk.com
- BONK leads with a 16% gain and high trading volumes on Coinbase, outpacing other memecoins like DOGE and SHIB.
- Technical analysis shows BONK’s breakout from consolidation, suggesting potential growth; it’s seen as undervalued compared to peers.
- Deflationary actions aim to increase BONK’s value, with a target of 1 trillion tokens to be burned by December.
Fresh bitcoin (BTC) highs and a round of memecoin listings on influential exchanges Coinbase and Robinhood have brought attention back to large cap memecoins, with BONK setting new highs on renewed trading interest and a lofty token burn target.
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BONK surged 16% over the past 24 hours to lead gains among majors and large cap memes on $2.6 billion in trading volumes — a relatively large figure for the Solana-based dog token.
On Coinbase, it led memecoin trading volumes at $384 million in the past 24 hours, higher among dogecoin (DOGE), pepe (PEPE), shiba inu (SHIB) and dogwifhat (WIF) — suggesting a bump in retail and institutional preference for the token on the exchange.
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(CoinGecko)Meme coins often see rapid price increases due to viral marketing, community enthusiasm, and speculative trading based mainly on narratives rather than having technical backing.
Bonk was created in December 2022 in the aftermath of the FTX exchange collapse by 22 developers from the Solana ecosystem, as CoinDesk reported in early 2023.
What Traders Say
Price chart data shows BONK has broken out from consolidation patterns, showing a bounce off a triple bottom on its weekly chart against the SOL/USD trade pair, Bonk core contributor @iamkadense pointed out an X post as part of a bullish thesis on the token.
The thesis is that SOL’s outperformance may drive attention to BONK as a beta bet on the broader ecosystem, a market behavior that often shows up during times of demand.
A triple bottom is a bullish chart pattern used in technical analysis characterized by three equal lows followed by a breakout above resistance.
Traders such as @theunipcs—who famously turned a $16,000 trader into over $18 million on Bonk and continues to hold the position—say the low unit bias, Coinbase trading volumes, and relatively low market cap compared to DOGE or SHIB add to BONK appeal for new traders.
“The last time we had the kind of retail influx and mania we’re about to witness: $DOGE hit an ATH market cap of $90 billion and $SHIB hit an ATH market cap of $43 billion,” @theunipcs said in an X post. “$BONK currently has a market cap of $3.6 billion, which means that it is ridiculously undervalued compared to DOGE, SHIB, and PEPE right now.”
“This means there is A LOT of room to grow,” they added.
Token Burns
Elsewhere, interest in BONK is booming in Solana circles for a host of activities that intend to deflate token supply—a move that has historically contributed to higher prices.
BonkDAO, a decentralized group of bonk’s believers that maintains the token, recently burned 100 billion tokens from the circulating supply and targets a trillion token burn in December, which could potentially increase value due to scarcity.
Burns refer to the permanent removal of tokens from circulating supply by sending them to a crypto address that’s not controlled by anyone.
“7.7 Trillion $BONK has been burned and ongoing daily burns of a billy plus. Yesterday, BONKbot burned 2 billion $BONK and $BERN is burning $BONK rapidly again,” Bonk’s @iamkadense said in an X post. “100B just burned, 1 Trillion to be burned for BONKmas and may not stop there by the community.”
Tokens for those burns will originate from applications within the Solana ecosystem that utilize BONK for a feature or set of features.
Per tweets, these include burns for bets placed on Dragontail, Christmas cards sent using BONKmark, and trades placed on LiveBonk, among other applications specified by Bonk’s X account.
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Shaurya is the Deputy Managing Editor for the Data & Tokens team, focusing on decentralized finance, markets, on-chain data, and governance across all major and minor blockchains.
Follow @shauryamalwa on Twitter