The meme coin BONK experienced a meteoric rise of over 100% to its price this week, achieving a new all-time high (ATH) and prompting discussions among investors regarding its potential and the possibility of a broader altcoin season.
BONK Price Action: A New Meme Coin Leader?
BONK’s price surge has dethroned Dogwifhat as Solana’s leading meme coin. While Dogwifhat experienced a 15% increase, BONK more than doubled its value, a notable development considering Dogwifhat’s recent Coinbase listing.
The unexpected shift highlights the influence of “unit bias,” particularly among newer market participants. BONK’s higher circulating supply translates to a lower per-unit price than Dogwifhat, making it appealing to newcomers.
BONK’s trading volume greatly surpasses competitors, indicating a substantial market appetite and the potential for continued price growth.
Other analysts have even loftier long-term projections. Trader Zer0 anticipates BONK reaching a $30 billion market cap during this cycle, representing approximately eight times its current value. The projection, while ambitious, is supported by BONK’s recent performance and substantial trading volume.
Dami Defi’s $0.00014 target may be reached in early 2025, while Zer0’s $30 billion market cap projection represents a potential cycle peak.
Is an Altcoin Season Imminent?
The resurgence of BONK and other meme coins has spurred discussion about a potential altcoin season. Historically, Bitcoin’s dominance declines roughly 30% over two to four months during altcoin seasons.
The 2017-2018 altcoin season was driven by the Initial Coin Offering (ICO) boom, while the 2020-2021 season was fueled by the rise of Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs).
Although Bitcoin dominance fell from a 1,300-day high in November before recovering this week, the altcoin market continues to be heavily focused on meme coins.
A report by Hashkey Capital, titled “Why We Are Bullish on Altcoins,” published on October 22, suggests a high probability of an impending altcoin season.
Jupiter Zheng, Partner, Liquid Fund and Research director at Hashkey Capital, pointed to the Real World Asset (RWA) and Decentralized Physical Infrastructure Network (DePIN) sectors as particularly noteworthy due to their connection between traditional and emerging financial structures.
Zheng explained that RWAs have received massive institutional investment, citing Mantra’s $500 million real estate tokenization and BlackRock’s BUIDL fund as examples.
In contrast, the DePIN sector has entered a more mature stage, according to Zheng, where projects must demonstrate real-world utility.
Pepe Unchained: A New Contender in the Meme Coin Arena
Meanwhile, another meme coin, Pepe Unchained, is gaining traction with its Ethereum layer 2 blockchain, the first Pepe-themed network of its kind.
This ecosystem seeks to reduce costs and enhance speeds compared to Ethereum, with a meme-centric focus extending even to its decentralized applications (dApps). The project’s presale has already raised $35 million, reflecting the current enthusiasm for meme coins and the concept of a dedicated meme coin ecosystem.
The Pepe Chain will offer features like a streamlined meme coin generator, block explorer, staking, decentralized exchange, and an Ethereum bridge. This has attracted considerable interest from investors, influencers, and media alike.
The BONK price performance, coupled with the emergence of projects like Pepe Unchained, continues to fuel discussions about the direction of the altcoin market and the possibility of a big altseason on the horizon.
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