Solana Dog Coin Bonk (BONK) Soars 43%, Here’s Key Reason

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Written By Maya Cantina

Sun, 21/04/2024 – 12:48

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Bonk (BONK), a dog-themed token based on the Solana blockchain, surged an impressive 43% in response to a broader rally among meme coins and the proposal for a substantial treasury burn totaling a staggering 280 billion tokens.

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At the time of writing, BONK was up 41.82% in the last 24 hours to $0.00002134, and up 35.83% in the previous seven days. BONK’s 24-hour trading volume has risen 391%, with $431.53 million worth of trade.

BONK surged to intraday highs of $0.00002192, extending a three-day rise from lows of $0.00001357 on April 18. If today closes in green, BONK will mark its fourth day of consecutive gains.

The recent surge in the price of Bonk can be attributed to a few reasons, chief among them being the resurgence of meme coins in the broader cryptocurrency market. As meme coins garnered renewed interest, investors turned their attention to projects within the Solana ecosystem, seeking opportunities for outsized returns.

Bonk’s recent price jump might not be solely due to the meme coin rally; it might have also been fueled by a substantial proposal to burn 280 billion BONK tokens.

As stated in a tweet, BONK DAO, the decentralized arm of BONK, has received a proposal to burn 280 billion BONK from its Treasury.

BONK DAO proposes to burn 278,393,137,215 BONK from its Treasury, which represents 100% of the BONK generated by BONK DAO under its revenue-sharing arrangement with BONKBot since its launch in late 2023.

BONKBot is Solana’s Telegram trading bot, which debuted in November 2023. BONKBot levies a 1% fee on all transactions, of which 10% goes to the BONK DAO.

By burning the BONK earned, BONK DAO would reduce the total supply of BONK while recognizing the community’s desire to have a matching burn from the DAO, as done by BONKBot on an ongoing basis.

The proposal has been met with enthusiasm from the Bonk community, which views the burn as a positive step toward stabilizing the coin’s market and fostering growth. As the proposal awaits approval, the anticipation has contributed to the buying frenzy, pushing Bonk’s price higher.

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