Solana, the blockchain network that hosts Bonk, saw an impressive run in 2023. Earlier this month, SOL saw a notable 50% jump in just a few days, indicating a strong bullish trend.
The cryptocurrency market is experiencing another boom in the altcoin space, as the Solana-based memecoin, Bonk (BONK), witnessed an increase of 40% in the last 24 hours after the announcement of its listing on the important exchange Coinbase Global Inc (NASDAQ: COIN). This development positions BONK as the third largest meme coin on the platform, behind giants Dogecoin (DOGE) and Shiba Inu (SHIB).
BONK Listing on Coinbase and the Impact on the Market
Coinbase's announcement prompted BONK price to reverse almost all of the previous week's losses. Priced at $0.000014 this morning, Bonk's trading volume has exceeded $235 million since the announcement, demonstrating the market's enthusiastic response.
Coinbase hinted at a cautious approach, stating that trading in BONK-USD trading pairs would be launched in phases.
“Once sufficient supply of this asset is established, trading of our BONK-USD trading pairs will begin in phases,” the exchange said in a statement. Additionally, there may be restrictions on BONK support in certain jurisdictions.
Originally conceived as a meme coin, Bonk quickly found traction within the Solana ecosystem after challenges from Sam Bankman-Fried. Several Solana projects integrated the token for non-fungible token (nft) payments and some even used “burning” mechanisms for nft-based events in the weeks following its launch in December. Despite its meme origins, Bonk has been taken seriously, with a team of 22 working collaboratively, eschewing a singular leader model.
The success of the token can be attributed to the growing interest in the Solana ecosystem, which has seen an increase in market capitalization from $50 million to a staggering $800 million since October. Additionally, Bonk has expanded its visibility by securing listings on major centralized exchanges such as Binance and KuCoin, helping to increase transaction volumes, demand, and ultimately its price.
Despite the setbacks the Solana ecosystem faced with the collapse of the now-defunct derivatives exchange FTX, the adoption of BONK marked a resurgence of interest in the network. Furthermore, futures data reveals a substantial increase in open interest over the past month, indicating increased trading activity in Bonk derivatives.
This increased volatility has been a driving force behind BONK's remarkable 6,000% gain over the past three months, making it the top-performing mid-cap memecoin over this period.
Solana performance and future prospects
Solana, the blockchain network that hosts Bonk, saw an impressive run in 2023. Earlier this month, SOL saw a notable 50% jump in just a few days, indicating a strong bullish trend.
As highlighted in a previous Coinspeaker report, the Solana ecosystem is gaining traction among merchants, as indicated by its total value locked (TVL) and the healthy growth of most, if not all, of its projects.
According to a report from VanEck, the bullish case for Solana extends into the future, with predictions that the platform could host an app with over 100 million users and revenue from SOL holders would reach $8 billion by 2030.
Data from MarketWatch supports this positive outlook, with SOL up more than 87% in the last month and a staggering 178% in three months. Over the past year, Solana has gained over 396% and its year-to-date gains stand at an impressive 473%.
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