The meme coin BONK has skyrocketed over 100% this week, reaching an all-time high (ATH) and fueling discussions among investors about the potential of this coin as well as the possibility of a broader altcoin season.

BONK price action: A new leading meme coin?

The price surge of BONK has dethroned Dogwifhat as the top meme coin on Solana. While Dogwifhat rose 15%, BONK doubled its value, a notable development considering Dogwifhat was recently listed on Coinbase.

This surprising change highlights the influence of 'unit bias', especially among new market participants. A higher circulating supply of BONK translates to a lower price per unit than Dogwifhat, making it appealing to newcomers.

The trading volume of BONK far exceeds its competitors, showing a strong market demand and the potential for continuous price increases.

BONK price prediction and altcoin season outlook

Cryptocurrency analyst Dami-Defi has set a price target for BONK at $0.00014, citing a weekly candle close above the previous high as a strong bullish indicator.

Other analysts even have higher long-term forecasts. Trader Zer0 predicts that BONK will reach a market capitalization of $30 billion in this cycle, equivalent to about eight times its current value. This forecast, although ambitious, is supported by BONK's recent performance and significant trading volume.

Dami Defi's target of $0.00014 could be reached by early 2025, while Zer0's projected market capitalization of $30 billion could be a potential cycle peak.

Is the Altcoin season coming soon?

The resurgence of BONK and other meme coins has sparked discussions about a potential altcoin season. Historically, Bitcoin's dominance decreases by about 30% within two to four months during an altcoin season.

The altcoin season of 2017-2018 was driven by the boom of Initial Coin Offerings (ICO), while the 2020-2021 season was driven by the rise of Decentralized Finance (DeFi) and Non-Fungible Tokens (NFT).

Although Bitcoin's dominance has decreased from a 1,300-day high in November before recovering this week, the altcoin market continues to focus heavily on meme coins.

A report from Hashkey Capital titled “Why We Are Optimistic About Altcoins” published on October 22 shows a high likelihood of an altcoin season occurring.

Jupiter Zheng, Partner, Director of Liquidity Fund and Research at Hashkey Capital, points out that the Real World Asset (RWA) and Decentralized Physical Infrastructure Network (DePIN) sectors are particularly notable due to the connection between traditional and emerging financial structures.

Zheng explains that RWA has received significant investment from institutions, citing the $500 million real estate tokenization of Mantra and BlackRock's BUIDL fund as examples.

On the contrary, according to Zheng, the DePIN sector has entered a more mature stage, where projects must demonstrate real utility.