The newly minted canine-centered memecoin BONK has had a roller coaster of a week since it was introduced. The Solana-based token, which abruptly sprang from nowhere and pushed its way into the top 200 cryptocurrencies by market value, was severely impacted by a major bearish trend late on Thursday noon.
Why Is BONK Crashing?
The generally-volatile crypto market has had a stunning 24-hour period, with the price of most cryptocurrencies rising significantly. With the whole crypto sector’s market valuation up 3.38% to $881.76 billion at the time of writing, the price of Solana’s viral memecoin BONK plummeted in comparison.
In spite of the fact that the Solana community has been rallying around the cryptocurrency, calling it to be “for the people, by the people,” its value has decreased by 35% in the past twenty-four hours. Given that it has significantly outperformed the market since the beginning of the year, it is not hard to relate the factors that led to its price decline.
BONK’s Whale Activity
BONK has been subject to huge massive whale accumulation in the past couple of weeks, with reports of rich wallet investors buying millions, if not billions of the viral token. While zooming out of its price, the token still maintains a solid return on investment and remains a frontrunner in terms of price.
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However, following the current bearish outburst, the fully diluted market cap has dropped by 32.61% to $102 million, while the 24-hour trading volume of the altcoin has increased by a whopping 200% to $36 million. This is a direct indication of the fact that a significant number of SOL whales are selling off their BONK holdings in order to reap enormous profits.
BONK Price To Turn Bullish?
On Jan 12, Solana NFT fans rejoiced over the release of the Bonkz NFT collection, which immediately surpassed ABC, y00ts, and DeGods, in addition to a number of other well-known NFT marketplaces on Solana’s blockchain. After the completion of the initial sale, the developers of the NFT collection decided to burn a whopping 13,900,000,000 BONK tokens. The Solana community believes that the burning activities will help preserve the memecoin’s market worth over the long term.
Roughly $21,000 of $BONK has just been BURNED. pic.twitter.com/FBU44noFeO
— OMNI (@OMNIcreative_) January 11, 2023
As things stand, the Bonk (BONK) price is currently being traded at $0.000001014. This represents a decrease of 36% on the day, in contrast to a gain of 837% during the last month, as per crypto market tracker CoinMarketCap.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.