- Shiba Inu-based meme token was launched on December 25, 2022.
- Bonk is experiencing massive hype, and Solana rose by 33%.
- LPs earned 999% APR.
Crypto Industry is known to welcome newly launched tokens and coins with open arms, as many new tokens have seen a massive rise within the first few weeks of their launch. Bonk, a meme token based on Shiba Inu, was released on December 25, 2022, and is soaring to new heights, which made some traders believe that its trading volume is potentially driving Solana’s price upward.
Over the past 48 hours, SOL has gained 34%, and at the same time, Bonk climbed by 117%. The wider crypto market remained suppressed, as traders were hoping that Bonk would be able to present relatively newer opportunities during the ongoing downturn.
Bonk boasts the title of the first dog token on the Solana blockchain, per the project’s website. 50% of the token supply was airdropped initially, which was done with the goal of removing toxic Alameda-styled tokenomics. This airdropped caused a surge of more than $20 million in trading volume, as per Orca, Solana’s decentralized exchange.
Liquidity Providers (LPs) benefited from interaction with Bonk, and proving it, the right LPs were earning over 999% APR as on January 4, 2023, which is much higher when compared to the popular SOL/USD pair.
Although these current trends show a huge demand for Bonk, these high yields may or may not be forever. A supply of 1 billion was also burned on January 3, 2023.
Blockchains like Solana have their maximum benefit from increased usage, as they saw multiple projects leaving the ecosystem post-FTX collapse. But Solana saw an increase in 24-hours fees by 18.6%, and their 24-hour daily active users surged by 15.8%.
Although Bonk is just another meme token, its increasing demand can be considered positive for Solana Blockchain, as Vitalik dreamt that the blockchain should get a chance to thrive.
Solana is currently trading at $13.23 with a drop of 0.38%, while its price against BTC stands at 0.0007866 BTC, which is a 0.22% drop, its market cap stands at $4.8 billion with a 0.41% drop, while its volume was at $539 million with 38.57% correction, in the last 24 hours.
While its rank remains at #14, and its market dominance is at 0.60%. The current rate is 94.92%, down from its all-time high of $260.06, achieved on November 6, 2021, and is 2514.12%, up from its all-time low of $0.5052 SOL touched on May 11, 2020.
Some coins and tokens saw a massive rise at the start but couldn’t manage the hype, and some even disappeared. And it is too early to say anything about Bonk, as to what will be its future and will it be the one who saves Solana.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/01/06/bonk-goes-bonkers-will-it-revive-solana/