[BONK price rises 25% after proposed destruction of 84 billion tokens]
Despite the growth of other altcoins and meme coins, BONK’s rise was mainly driven by the major announcement of its Decentralized Autonomous Organization (DAO).
On July 8, BONK DAO announced on the X platform that it had received a proposal to burn 84 billion tokens from its vaults. A token burn is the permanent removal of a certain amount of a cryptocurrency, increasing scarcity and boosting its long-term value.
"BONK DAO proposes to burn 83,917,950,070 BONK, which represents 100% of the BONK earned by BONK DAO in the second quarter," the statement read.
This is not the first time the BONK team has burned tokens. In April, 99.99% of the community voted in favor of burning 278 billion BONK, when the market was in a bear market and the price increased by 12% in a matter of hours. This time, the token price initially dropped to $0.000021 but was trading at $0.000027 at press time.
According to Santiment’s on-chain data, this development boosted the social dominance rate to 0.416%, showing a significant increase in discussion of the meme coin. If discussions continue to increase, prices may continue to rise. Historical data shows that higher social dominance rates can drive up BONK prices.
Technical analysis also supports further price gains. The relative strength index (RSI) on the daily chart is at 55.78, indicating bullish momentum. Chaikin Money Flow (CMF) is also about to enter positive territory, indicating more room for price growth.
The chart shows that BONK’s price behavior is similar to April, when the price rose from $0.000014 to $0.000027, achieving growth in a matter of weeks. If a similar situation occurs again, the price could jump to $0.000029, or $0.000031 in an extremely bullish scenario.
The community has six days to approve or reject the proposal. If there is overwhelming support for burning the coin, the bullish prediction will come true. If holders profit from the recent price increase, the price may fall. Additionally, if the community rejects another burn, the token price could drop to $0.000023.
