Solana-based meme coin Bonk (BONK) has eclipsed all meme coins among the top 100 cryptocurrencies with an increase of over 25% in the past 24 hours.
At the time of writing, BONK was up 24.3% over the past 24 hours, trading at $0.000026 according to data from CoinMarketCap. The crypto asset’s market cap had surpassed $1.8 billion, surpassing Dogwifhat (WIF), another competing Solana-based dog-themed meme coin whose market cap stood at $1.71 billion.
The meme coin’s daily trading volume has soared by 155% over the past day, hovering around $544 million. However, BONK is still 44% below its all-time high of $0.000047, which it reached on March 4.
Bonk, a meme coin that gained popularity in 2023, saw a significant surge as the meme coin craze boosted the value of Solana.
Initially known as another dog-themed meme coin, Bonk has expanded its utility to encompass decentralized finance (DeFi) integration. The project also collaborates with cross-chain communication protocols, nft marketplaces, and various other cryptocurrency market ecosystems.
BONK trading pairs are now available on major exchanges such as Binance, Coinbase, OKX, and Bitstamp.
BONK’s latest price surge comes after a July 8 post on x by BONK DAO, the decentralized autonomous organization that oversees the Bonk project. The post announced a proposal to burn 84 billion BONK tokens (worth $2 million) from its Treasury, which is now in effect. BONKBot transferred these 84 billion tokens to the DAO during Q2.
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Token burning, the process of permanently removing a certain amount of tokens from circulation, often results in a decrease in supply. This reduction in the total available supply can create a scarcity effect, which can increase demand and drive up the price of the token.
Furthermore, according to a study x x.com/FishTheWhales/status/1810539459651551717″ target=”_blank” rel=””>mail According to whale tracker FishTheWhales, whales are buying BONK, which is further contributing to its price increase.
BONK’s recent price surge also coincides with a broader rally in meme coins.
Among them, the frog-themed coin Pepe (PEPE) emerged as the second best performer on Tuesday, with its holders seeing gains of over 12% over the past 24 hours. The ethereum-based token saw a 42% surge in volume, reaching $1.12 billion, the highest among meme coins.
Other popular meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) also saw gains, rising 3.9% and 3.11% respectively.
Overall, the market cap of meme coins rose to $42.53 billion, marking a 7% increase over the past 24 hours.
This meme coin rally comes as major cryptocurrencies like bitcoin begin to recover after falling below $55,000 on July 5, their lowest point in five months.
Last week, bitcoin (btc) closed at around $55,850, down 11% from the previous week’s close of $62,775. Significant selling pressure pushed btc as high as $53,500 on Thursday before recovering to $58,250 and settling at $55,850.
During this downturn, btc Spot ETFs saw net inflows of $238 million. The cumulative trading volume since inception amounts to approximately $315 billion, reflecting a decline in typical Q3 trading activity.
Matteo Greco, a research analyst at Fineqia International, pointed out to crypto.news that this decline in activity should be considered a seasonal trend and not a negative one. Interestingly, recent price behavior did not correlate with btc Spot ETF flows, deviating from historical patterns where ETF flows significantly influenced prices.
“For the first time since its inception, there is a notable decoupling between price action and capital flows, indicating that recent price performance has been driven primarily by trading activity within the crypto-native space,” Greco said.
As of Tuesday, bitcoin was up more than 3% over the past day to $57,515, with 24-hour lows and highs of $55,256 and $57,879, respectively.
bitcoin dominance has slightly decreased by 0.26% to 53.64%, indicating increased activity in the altcoin market. The global cryptocurrency market capitalization has increased by 3.4% to $2.12 trillion.
The significant rise of the meme coin market is often linked to the performance of bitcoin due to its influence on the broader cryptocurrency market.
When bitcoin performs well, it typically boosts investor confidence and interest in alternative coins (altcoins), including meme coins. This effect can create a positive feedback loop, where rising prices attract more investors, causing prices to rise further.
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