As Bitcoin stabilizes above $40,000, investor attention is turning to altcoins, propelling memecoins like BONK, launched on the Solana (SOL) blockchain in December 2022. Why has BONK seen its share price explode by over 14,000% since last October
The unstoppable BONK on Solana?
Now that the Bitcoin price seems to have firmly established itself above the $40,000 mark, investors are beginning to turn their attention to altcoins, and in particular to those likely to yield significant gains due to increased volatility.
A change of strategy that has materialized in the form of a 2% drop in BTC’s dominance in the space of ten days.
And among those cryptocurrencies that are on a roll, BONK is one of the memecoins that is benefiting the most. Launched in December 2022 as an airdrop on the Solana (SOL) blockchain, BONK is now present on around ten networks. After spending 2023 under the radar, memecoin has been on an almost constant rise since the end of last October.
At the time of writing, the price of the BONK token has risen by over 14,600% from the beginning of its rise to today.
BONK price evolution from inception to today (Daily)
With a market capitalization of just $16 million last June, BONK was struggling to attract investor interest. And yet, memecoin’s market capitalization has surpassed $2 billion today, more than double that of yesterday.
Why has it risen so high?
If we go back to the chronological order of things, the first factor that contributed to the rise of Bonk memecoin was the craze surrounding the Solana ecosystem, itself initiated by recent airdrops that very generously rewarded certain users of the network, sometimes with little in return.
The appeal of Solana, which had plummeted as a result of the fall of FTX, the exchange itself being particularly involved in this blockchain, has finally been revived.
Evidence of this can be seen in the rise in the network’s total locked value (TVL) and trading volumes:
Evolution of TVL (in blue) and trading volumes (in green) on Solana (USD)
Then, the rise in the BONK price accelerated when US cryptocurrency exchange giant Coinbase announced the listing of memecoin on December 13. Having already risen substantially, BONK gained 40% in the 24 hours following the announcement.
And the recent rise over the last 24 hours is explained by a new listing, this time on Binance. As the world’s largest platform in terms of volume traded, the announcement of a listing is almost always followed by a rise in the cryptocurrency in question.
Unsurprisingly, BONK has been stamped with the “Seed Tag” bucket on Binance, meaning that it is subject to particularly high volatility.
Binance will list @bonk_inu $BONK with Seed Tag applied.
https://t.co/BVs6KjrRvK pic.twitter.com/AKB6mlwnkL
– Binance (@binance) December 15, 2023
Passing hype or future competitor to Dogecoin? Only time will tell
