BONK, one of Solana’s most prominent meme tokens, is now trading at $0.000031, which is nearly its one-month low. It’s a sharp falloff from its high of $0.000053 which it hit just back on November 22, indicating that its value is trending in the wrong direction.
Traders are also turning away from BONK, as open interest has decreased to $8.32 million, which is a three-month low. In spite of those ongoing challenges, BONK has kept its community going and hopes to one day return to the crowded meme token market.
BONK’s Token Burn: Reducing Supply from 100 Trillion to 91 Trillion
Recently, Bonk DAO burned 1.69 trillion BONK tokens to rejuvenate the value of BONK tokens, bringing the total supply to a fresh low of 91 trillion from 100 trillion. They received overwhelmingly significant approval on this burn at a value of over $52 million. They pulled it off in a single transaction on the Solana blockchain.
Resetting the figures for the circulating supply was part of BONK’s second-anniversary celebrations and was a strategy to increase the value of the token by reducing it.
Community engagement activities, including social media campaigns and ecosystem partner collaborations, were standard alongside a run of burn campaign activities from November 15 to December 25. Although the supply has decreased, BONK’s price hasn’t completely rallied.
The community-driven initiative was a mixed bag, with newer Solana-based meme tokens like Pudgy Penguins’ PENGU and DogwifHat (WIF) picking up momentum. On Monday, PENGU surpassed BONK to become the leading meme token on Solana, with a market capitalization of $2.4 billion.
Even on Paradox, it was outpaced by major exchange Binance as the largest holder of the token, retaining 9% of the total supply. Moreover, 4.8% of BONK’s total supply is locked in staking pools, which means there are only 95.2% of tokens in circulation on the market.
BONK’s Market Sentiment: Neutral with Rising Trader Interest
Yet BONK is optimistic about what has to come. The token still benefits from a well-established community, widespread across 11 different networks and listed on major exchanges. The BONK market sentiment is in the neutral territory with the current Fear & Greed Index indicating a Greed mode, so the interest of traders is increased.
For price predictions, BONK is trading between key support levels of $0.000031, $0.000029 and $0.000028 and resistance levels of $0.000033, $0.000034, and $0.000036. Analysts are expecting a rebound, predicting a 30.39% price surge in the coming five days, at least giving short-term optimism.
BONK is surprisingly a player in the current market, as investors are starting to look for low market cap tokens to earn gains. Though only time will tell whether BONK can rise from the ashes and return to its position as one of the token meme leaders in the crypto space, a scenario has been presented that could, at least, allow them to breathe a sign of ease.
Conclusion
The recent setbacks of the BONK tokens notwithstanding, the token and server team behind BONK are feeling good about their course, with their loyal community and token burn. The token is present across 11 chains and listed on the biggest exchanges, which could mean a possible recovery as traders diversify into under-cap tokens.
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FAQs
- Why has BONK’s price dropped recently?
BONK’s price fell from $0.000053 to $0.000031 due to reduced open interest and traders shifting focus to other assets. - What was the impact of the Bonk DAO token burn?
Bonk DAO burned 1.69 trillion tokens, reducing the supply to 91 trillion, aiming to boost BONK’s value. - How did the community participate in the burning campaign?
The community supported the burn via social media and ecosystem partnerships, with 99% voting in favour. - 4. What is BONK’s price outlook?
Analysts predict a 30.39% price surge in the next five days, with growing trader interest indicated by a “Greed” sentiment.
