#BONK Why has BONK been leading the market today?
While other altcoins and memecoins have also seen growth, BONK’s rise is due to a major announcement from its decentralized autonomous organization (DAO).
Today, BONK DAO announced through its X account that it had received a proposal to burn $84 billion from its treasury.
Token burning is the process of removing a certain amount of cryptocurrency from circulation. These tokens are usually sent to wallets where the assets cannot be spent or retrieved.
This strategic move usually enhances scarcity and increases the long-term value of cryptocurrencies.
“BONK DAO proposes to burn 83,917,950,070 BONK from its treasury, which is equivalent to 100% of the BONK earned by BONK DAO in the second quarter of the revenue sharing agreement with BONKBot.” reads the BONK DAO announcement.
This is not the first time the team behind the meme coin has burned tokens. In April, 99.99% of the community voted in favor of destroying 278 billion BONKs, when the broader market was in a bear market phase.
But BONK benefited from this development as its price rose by 12% in a few hours. This time, the price of the token initially fell to $0.000021. However, at press time, the meme token is trading at $0.000027.
According to Santiment’s on-chain data, the result of this development is a rise in social dominance.
As can be seen in the figure below, the social dominance rate is 0.416%, reflecting a significant increase in mentions and discussions related to the meme coin.
If the discussion around the token continues to heat up, then the price may continue to rise. For example, the figure below shows how higher social dominance drives BONK prices up.
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