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Debashree Patra
Debashree Patra
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- Dec 27, 2024 05:29 UTC
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Can BONK Rebound? Massive $52M Burn Fails to Spark Rally
BONK, a Solana meme token, has fallen significantly from its November peak, with open interest declining.
A massive token burn of 1.69 trillion BONK was completed, aiming to increase its value. However, its price has not seen a major rally.
Despite facing competition from newer meme tokens, BONK remains hopeful, relying on its community and multi-chain presence.
BONK, one of Solana’s most popular meme tokens, is trading at $0.000031, dangerously close to its one-month low. This marks a steep fall from its November 22 peak of $0.000053. To make matters worse, open interest in BONK has plunged to $8.32 million, the lowest in three months, as traders turn their attention to newer tokens. But all hope is not lost.
With a loyal community, recent supply reductions, and ambitious plans to reclaim its position, could BONK be gearing up for a major comeback?
Let’s dive into what’s happening behind the scenes.
Massive Token Burn to Boost Value
In an effort to increase its value, BONK DAO burned 1.69 trillion tokens, reducing the total supply from 100 trillion to 91 trillion. This burn, valued at over $52 million, was approved by 99% of the community and completed in a single Solana transaction. The initiative was part of BONK’s second-anniversary celebration, designed to reduce the token supply and increase its scarcity.
Community Participation
The token burn campaign, which ran from November 15 to December 25, included social media events and collaborations with Solana ecosystem partners to involve the community. BONK DAO remains the largest holder, controlling 9% of the total supply, even surpassing Binance. Additionally, 4.8% of the supply is locked in staking pools, further limiting circulation.
New Rivals Challenge BONK’s Dominance
Despite this significant token burn, BONK’s price has not seen a major rally. Newer Solana meme tokens like Pudgy Penguins’ PENGU and DogWifHat (WIF) are gaining popularity. PENGU, with a market cap of $2.4 billion, has surpassed BONK as the leading Solana meme token. However, BONK remains optimistic about its future, banking on its strong community, wide presence across 11 chains, and listings on major exchanges.
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Price Outlook: Can BONK Rebound?
BONK’s market sentiment remains neutral, but the Fear & Greed Index shows “Greed,” signaling growing interest among traders. Its price is currently moving between key support levels at $0.000031, $0.000029, and $0.000028, with resistance levels at $0.000033, $0.000034, and $0.000036. Analysts predict a possible 30.39% price increase in the next five days, offering hope for a rebound.
BONK is becoming a notable player as investors focus on low-cap tokens for potential profits. With strong community backing, reduced supply, and optimism for a price recovery, BONK could still surprise traders. Be on the lookout!
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