BONK Price Rally: What Explains Its 83% Rise Over the Week

Published in: April 26, 2024

• The ongoing rally could have been fueled by a massive token burning program.
• Most discussions about the meme coin on social media were positive.

bonk [BONK]the first dog-themed memecoin in the solana [SOL] network, continued to defy the broader market pullback. According to CoinMarketCap, the cryptocurrency rose 12% in the last 24 hours, becoming the second highest gainer in the market.

Additionally, it was the best-performing asset over the past week, posting gains of over 83%.

The speculation has resulted in a sharp increase in daily trading volumes, reaching levels last seen more than a month ago, AMBCrypto noted using data from Santiment.

What drives BONK?

The ongoing rally could have been fueled by a proposal by the BONK DAO to burn nearly 280 billion BONK tokens from its treasury, and its subsequent move.

Token burning has become one of the most sought after events in the crypto industry during the year. Several projects are looking for ways to apply deflationary pressure on the currency by permanently removing a portion of its supply.

Anticipating a price increase for BONK due to the supply shock, many users might have been tempted to grab the coin.

The market is optimistic about BONK

Optimism was also evident in the way futures traders bet on BONK. The number of traders holding the coin increased sharply over the week and surpassed the number of short positions at the time of writing, according to AMBCrypto’s analysis of Coinglass data.

Realistic or not, here is BONK’s market capitalization in terms of BTC

BONK’s pump also made it a topic of conversation on some of the major cryptocurrency-focused social channels, including those on Telegram, Reddit, and Discord.

Most of the discussions on these forums were optimistic about the currency’s prospects, as explained by the positive weighted sentiment indicator.

This is an automatic translation of our English version.