BONK Developers Prepare to Burn Another 1.69 Trillion BONK Coins After Community Hits First Milestone
In late November, the developers of BONK, a popular meme coin based on the Solana blockchain, came up with a proposal.
It is set to burn a trillion coins through community contributions in an event called BURNmas.
Last Wednesday, they announced that they had successfully passed this important milestone and that they intend to burn a total of 1.69 trillion BONK coins, in a move that could help push its value to unprecedented levels.
Hey BONKers, a quick BURNmas Update:
During the campaign, the BONK community exceeded The Dog's (and the DAO's) expectations and REALLY showed up
The final number of $BONK gathered by these incentives is over 1,690,000,000,000
All that remains now is a DAO multisig… pic.twitter.com/GtZ16u3FK7— BONK!!! (@bonk_inu) December 25, 2024
Perhaps the above is the main reason behind the 7% increase in the price of the Bonk coin last week, making it one of the few meme coins that achieved positive performance during it.
Remarkably, on December 20th, when the project developers announced that they had reached their first milestone of burning one trillion coins, the BONK/USD price rose by 14%.
However, it was not spared from the correction wave that hit the crypto markets during the past few days, settling at a loss of 25.6% compared to its value 30 days ago.
Other currencies also went through a similar correction wave during the same period, including Dogecoin (DOGE), whose price fell by 20.2%.
And DogWifHat (WIF/USD) which has lost 42.6% over 30 days.
Burning is defined as sending a certain amount of the circulating supply of a digital currency to a specific crypto wallet address that is used as the final destination for the amount to be permanently removed from the total supply, where an automated smart contract is created for this final removal process,
In addition to verifying the identity of the contributors to ensure that they have the specified amount to be sent to the burning address.
Once this process is carried out, these currencies completely disappear from the total supply and lead to a final reduction in it.
The main purpose of burning is to make the currency supply scarce.
This could theoretically contribute to raising the value of the asset over time, provided that demand remains constant or increases. Data indicates that the total supply of BONK currently stands at 92.66 trillion coins. Therefore, getting rid of 1.69 trillion BONK coins means reducing its circulating supply by 1.8%.
BONK Price Continues to Decline as Market Responds to New Fed Approach
The chart of the BONK/USD price movement shows that it has been following a clear downward path since reaching its highest level on December 20 at $0.00005029.
This is an indication of a significant decline in demand for the currency, as the Federal Reserve’s statements - which were more hawkish than expected during its last monetary policy meeting - contributed to a decline in the value of most digital assets.
The US Federal Reserve also announced its intention to cut interest rates twice next year instead of the three times that were scheduled to be implemented. In the same context,
Market participants interpret this move as a sign that inflation could rise again in the next 3-6 months, which could increase the chances of the Federal Reserve stopping its monetary easing policy;
Low interest rates are often seen as a catalyst for investing in riskier assets such as cryptocurrencies, increasing investor appetite for risk and increasing liquidity flow into the markets.
Despite this temporary weakness,
The meme coin category saw a remarkable recovery after Donald Trump was declared the winner of the US presidential election last November, which paved the way for the prices of most of them to rise and set off to record new highs since then.
BONK is no exception, having gained 134.4% since the beginning of the year. Finally, the chart currently shows that the price may continue to decline in the foreseeable future unless the upper barrier of its descending channel is broken soon at some point,
Given the huge gains that meme coins have made recently, the current correction is very necessary.
It allows late investors to take advantage of the opportunity of the price reaching lower levels to buy.
Burning a trillion BONK coins soon, will this pave the way for a strong start and reaching a price of $1?