A 16% BONK all-time-high in the last 24 hours has placed Memecoins among the notable contenders, rising swiftly in rank during the ongoing cryptocurrency rally.
The Solana-based Memecoin may be a new entrant in the cryptocurrency space, but recent talks about a planned BONK token burn targeting 1 trillion tokens by December could be partly due to the impressive trade volumes. The surge in value has placed BONK squarely ahead of Dogecoin (DOGE), Pepe (PEPE), and Shiba Inu (SHIB), the most popular coins in the Memecoin market.
BONK Token Burn as a Strategy
The BONK all-time high that has traders anticipating more gains comes hot on the heels of Bitcoin highs that have also attracted a wave of new Memecoin listings on leading cryptocurrency exchanges Robinhood and Coinbase. BONK has accumulated $2.6 billion in trading volume and joined the ranks of DOGE, which is already enjoying individual and institutional interest. All technical indicators show that BONK is on the path of further upswings considering it’s just emerged from a consolidation phase.
Pundits believe an upcoming Bonk token burn is one of the catalysts that bolstered investor confidence. BonkDAO, the Decentralized Autonomous Organization that manages the token, has been actively reducing the number of tokens in circulation to enhance its scarcity and pump its price. Burning cryptocurrency tokens is a strategy that enables the developer to reduce the number of available tokens to increase their as long as the demand grows or at least remains constant. From all appearances, BonkDAO has effectively employed this principle, and it may be bearing fruit.
Renewed Market Activity After US Elections
There have already been several other token burns previously where over 100 billion BONK tokens were burned and the latest BONK token burn targets at least 1 trillion tokens by the end of 2024. Commenting on the proposed token burn, a leading BONK core contributor @iamkadense stated that besides having burned 7.7 trillion tokens so far and burning a billion others every day, “A burn of 1 trillion is planned for BONKmas and the community can continue to burn beyond that.”
There has been renewed activity in the crypto market during the last few weeks, leading to the 16% BONK all-time high as we head to the close of 2024. The enthusiasm surrounding the just-concluded US elections that brought in a pro-crypto President-elect has seen anticipation spike around the market, with pivotal transactions bringing a liquidity influx that has positively affected the entire market. The additional positive trader sentiment surrounding the anticipated BONK token burn has only made matters better.
The BONK all-time-high could be Just a Beginning
As the community reels with the enthusiasm surrounding the BONK all-time high, the price of the token has generally hovered around $0.000050 thanks to the ongoing buying pressure. Market charts predict an increase in the current Bull Bear Power (BBP) indicator that suggests a declining bearish dominance. There is a rising reading, meaning the BONK bulls are firmly in control, and this could push the price higher.
Experts believe that the trend could push the price to $0.000055. On the flip side, there is a chance that the price could drop to $0.000030 if BONK becomes overbought. The social dominance of the Memecoin market continues to receive much attention amid the developments that have brought the BONK to an all-time high. The 16% surge over the last 24 hours has signalled strong community visibility and heightened interest in Memecoins within the broader cryptocurrency market.
Conclusion
The BONK all-time-high comes immediately after the original Memecoin DOGE also experienced a three-year-high surge and reached slightly above $0.43 at the beginning of trading this week. The resurgence of DOGE is most likely associated with its ties to Elon Musk, who Donald Trump has nominated to lead the Trump 2.0‘s efforts to a department to be called Department of Government Efficiency—the D.O.G.E. speculative market dynamics and community involvement continue to play a significant role in the Memecoin market, and if all goes according to the prediction of expert, we can expect to see another BONK all-time—high sooner rather than later.
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