At the time of writing, BONK was up 24.3%, trading at $0.000026 according to CoinMarketCap. The market cap of BONK has surpassed $1.8 billion, overtaking Dogwifhat (WIF), another Solana-based dog-themed meme coin, which stands at $1.71 billion.
The daily trading volume of BONK has surged by 155% over the past day, reaching around $544 million. However, BONK is still down 44% from its all-time high of $0.000047, which it hit on March 4.
Bonk, a meme coin that gained popularity in 2023, saw a significant rise as the meme coin craze boosted Solana’s value. Initially known as another dog-themed meme coin, Bonk has expanded its utility to include decentralized finance (DeFi) integration. The project also collaborates with cross-chain communication protocols, NFT marketplaces, and various other crypto market ecosystems.
BONK trading pairs are now available on major exchanges such as Binance, Coinbase, OKX, and Bitstamp.
The recent price spike in BONK follows a July 8 announcement by BONK DAO, the decentralized autonomous organization overseeing the Bonk project. The post on X (formerly Twitter) announced a proposal to burn 84 billion BONK tokens (worth $2 million) from its Treasury, which is now in effect. These 84 billion tokens were transferred to the DAO by BONKBot during the second quarter.
Token burning, the process of permanently removing a certain number of tokens from circulation, often results in a decrease in supply. This reduction in total supply can create a scarcity effect, potentially increasing demand and driving up the token’s price.
Additionally, whale tracker FishTheWhales reported on X that whales are buying BONK, further contributing to its price increase.
BONK’s recent price spike also coincides with a broader rally in meme coins. Among these, the frog-themed Pepe (PEPE) emerged as the second-best performer on Tuesday, with holders profiting more than 12% in the last 24 hours. The Ethereum-based token experienced a 42% increase in volume, reaching $1.12 billion, the highest among meme coins.
Other popular meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) also saw gains, rising by 3.9% and 3.11%, respectively.
Overall, the meme coin market cap increased to $42.53 billion, marking a 7% rise in the past 24 hours.
This rally in meme coins comes as major cryptocurrencies like Bitcoin begin to recover after dropping below $55,000 on July 5, its lowest point in five months.
Last week, Bitcoin (BTC) ended at around $55,850, an 11% decrease from the previous week’s close of $62,775. Significant selling pressure pushed BTC to as low as $53,500 on Thursday before rebounding to $58,250 and settling at $55,850.
During this downturn, BTC Spot ETFs saw net inflows of $238 million. Cumulative trading volume since their inception stands at approximately $315 billion, reflecting a decline in trading activity typical of Q3.
Matteo Greco, a Research Analyst at Fineqia International, pointed out to crypto.news that this decrease in activity should be viewed as a seasonal trend rather than negatively. Interestingly, the recent price behavior did not correlate with BTC Spot ETF flows, deviating from historical patterns where ETF flows significantly influenced prices.
“For the first time since their inception, there is a noticeable decoupling between price action and capital flows, indicating that recent price behavior has been driven mainly by trading activity within the crypto-native space,” said Greco.
As of Tuesday, Bitcoin was up over 3% in the past day to $57,515, with 24-hour lows and highs of $55,256 and $57,879, respectively.
Bitcoin’s dominance has slightly decreased by 0.26% to 53.64%, indicating increased activity in the altcoin market. The global crypto market cap has risen by 3.4% to $2.12 trillion.
The significant rise in the meme coin market is often linked to Bitcoin’s performance due to its influence on the broader cryptocurrency market. When Bitcoin performs well, it typically boosts investor confidence and interest in alternative coins (altcoins), including meme coins. This effect can create a positive feedback loop, where rising prices attract more investors, further driving up prices.
