Since last month, there has been a new cryptocurrency meme called “Bonk,” which is a Solana token.
It is referred to as the first Solana coin devoted to dogs on the official website.
It is referred to as the first Solana coin devoted to dogs on the official website.
They state:
Bonk’s contributors were tired of the toxic tokenomics of “Alameda” and wanted to create a fun memecoin where everyone had a fair chance.
Therefore, it represents an effort to emulate the achievements of Dogecoin and Shiba Inu using a token on Solana.
Bonk, the new meme cryptocurrency’s boom
Late in December, Bonk was first offered for sale for just 0.1 millionths of a dollar. It had climbed to 0.2 millionths by the following day or 100% in a single day.
It increased to 0.3 millionths on January 1 before really taking off the next day. In fact, it reached a new all-time high of 9.2 millionths this morning after rising to 2.5 millionths on January 4.
To put it another way, the peak price this morning is 9,00% greater than the starting price from six days ago.
To put it mildly, this explosion is booming and probably certainly entirely speculative. It’s possible that many who purchase Bonk these days do so in anticipation that it would emulate the 2021 successes of Dogecoin or Shiba Inu.
However, given that this is a speculative boom, it’s possible that a bubble has already developed and is about to burst on the price of Bonk.
Thanks to the Bonk meme currency, SOL crypto has recovered 40%.
Since fees for Bonk token transactions must be paid precisely in SOL, Solana’s native cryptocurrency is also benefiting from this surge.
SOL’s price fell to its 2022 annual low on December 29 at a little over $8, although only for a very brief period of time. In fact, it was about $10 the following day.
The fact is that Bonk was launched on December 30, and although it is unclear if this was merely a coincidence of timing or the product of a deliberate strategy at the table, the price of SOL started to rise again on January 2 and reached $14 yesterday.
It is important to note that SOL appears to be down from yesterday’s $14 while Bonk reached a new all-time high this morning.
The price of SOL is currently about 60% higher than the 2022 lows reached on December 29, but it is still 95% below the highs of nearly $260 reached in 2021. It is still less than the $14.7 of December 14 and much less than the more than $35 of early November, though.
The connection between FTX and Solana
The failure of FTX, a significant stakeholder in the Solana ecosystem, was the issue for SOL.
It is no accident that Sam Bankman-company Fried’s Alameda, which is a member of the FTX group and is specifically mentioned on Bonk’s web page, was the cause of the demise of the FTT token.
In fact, some believe that the Alameda team or SBF itself is responsible for Bonk’s launch.
There were unquestionably close connections between Solana and FTX, Alameda, and SBF. There are undoubtedly connections between Bonk and Solana as well.
However, it is reasonable to have scepticism about the connections between the Bonk project and FTX or SBF.
The Bubble
Huge speculative bubbles inflated in 2021 on FTT, the FTX coin, and SOL before bursting in 2022. Another person who is being inflated by a bubble is Bonk.
In fact, the BONK/SOL liquidity pool would currently offer an annual APR of nearly 999% based on Orca’s data.
This APR is undoubtedly unsustainable, and a lot of speculators are being drawn to it. Sales of Bonk could be triggered, just as purchases were prompted when it started to increase so much and in such a short period of time. This insane amount of APR will eventually crash.
For trading pairings featuring BONK, Orca, a decentralized Solana-based exchange, has achieved over $20 million in trading volume, unexpectedly accruing thousands of dollars in fees for liquidity providers.
Bonk tokens have already been included in a number of Solana-based projects, with burn mechanisms having burned more than 1 billion tokens in the previous day alone. This is still a small portion of the available supply, which is just under 100 trillion.
Furthermore, BONK has logged the vast majority of deals on exchanges in the Solana ecosystem over the past 24 hours.
