BONK is one of the most popular meme tokens on Solana, currently trading at $0.000031, close to its lowest point in a month. This marks a significant drop from its peak of $0.000053 on November 22. As traders shift their focus to other assets, BONK's open contracts have also dropped to $8.32 million, the lowest level in three months. Despite these setbacks, BONK remains a low-cost token with a strong community and the potential to reclaim the top spot in the meme token market.
Massive token burn to rekindle interest
To enhance its value, Bonk DAO undertook a significant initiative by burning 1.69 trillion tokens, reducing the total supply from 100 trillion to 91 trillion. This burn, valued at over $52 million, was approved by 99% of community members and completed in a single Solana transaction. This burn is part of BONK's two-year anniversary celebration, aimed at reducing supply and increasing token value.
Community Engagement
The token burn activity took place from November 15 to December 25, engaging the community through social media campaigns and collaborations with ecosystem partners. Bonk DAO's wallet still holds 9% of the total supply, making it the largest holder, even surpassing Binance. Additionally, 4.8% of the supply is locked in staking pools, further limiting the number of tokens in circulation.
Challenges and Competition
Despite a significant amount of token burning, the price of BONK has not seen a substantial increase. Newer Solana meme tokens (such as Pudgy Penguins' PENGU and DogWifHat (WIF)) are becoming increasingly popular. The $2.4 billion market cap PENGU has surpassed BONK to become the leading Solana meme token. However, BONK remains optimistic about its future, relying on its strong community, widespread presence across 11 chains, and listings on major exchanges.
Current Market Sentiment
The current market sentiment for BONK is neutral, with the fear and greed index showing 'Greed', indicating increasing interest from traders. The token's price fluctuates between key support levels of $0.000031, $0.000029, and $0.000028, while resistance levels are between $0.000033, $0.000034, and $0.000036. Analysts predict a potential price increase of 30.39% over the next five days, bringing hope for a rebound.
In the current market, BONK is a surprising element as investors are turning their attention to low-priced tokens for profit.
