Bonk token (BONK), a dog-themed token on the Solana blockchain, has experienced a meteoric rise in four consecutive days, surging an impressive 43%. This price increase coincides with a broader resurgence of meme coins in the cryptocurrency market and a substantial proposed burn of BONK tokens from the project’s DAO treasury.
At the time of writing, BONK is up a significant 38.85% in the last 24 hours, reaching $0.00002128. The token has also seen impressive gains over the past week, rising 36.18%. This bullish momentum is further reflected in the 434.89% surge in BONK’s 24-hour trading volume, reaching a staggering $466.10 million.
Bonk token’s impressive run extends beyond a single day. The token has been on a three-day tear, reaching intraday highs of $0.00002192. If the day closes positive, it will mark Bonk’s fourth consecutive day of gains, solidifying its recent uptrend.
Analysts attribute this surge to two key factors. Firstly, meme coins are experiencing renewed interest within the broader cryptocurrency market. As investor sentiment shifts towards these playful tokens, projects like Bonk, built on the popular Solana blockchain, are attracting attention due to their potential for high returns.
Secondly, a significant proposal to burn a staggering 280 billion BONK tokens from the BONK DAO treasury has likely fueled the recent price jump. This proposal, submitted by the decentralized arm of the Bonk project, aims to reduce the total supply of BONK tokens in circulation.
The proposed burn represents 100% of the BONK generated by the DAO through its revenue-sharing agreement with BONKBot, a Solana Telegram trading bot launched in late 2023. BONKBot charges a 1% transaction fee, with 10% of that fee going directly to the BONK DAO treasury. By burning these accumulated tokens, the DAO intends to not only reduce the overall supply but also demonstrate a commitment to aligning with the ongoing burn mechanism implemented by BONKBot.
The Bonk community has enthusiastically embraced the proposed burn, viewing it as a positive step towards stabilizing the token’s market value and fostering long-term growth. This anticipation surrounding the proposal’s approval has undoubtedly contributed to the recent buying frenzy, further propelling Bonk’s price upwards.
Whether the proposed burn will be approved and how it will ultimately impact the price of Bonk remains to be seen. However, one thing is clear: Bonk is currently riding a wave of positive sentiment, fueled by both the broader meme coin rally and the community’s excitement about the potential token burn.
Also See: Super Trump Coin (STRUMP) Struggles After Volatile Week