The newly minted dog-centered memecoin BONK has been on a rollercoaster ride over the past few weeks since it was first introduced. The Solana-based token, which popped up abruptly out of nowhere and worked its way into the top 200 cryptocurrencies by market value, was hit hard by a major bearish trend late Thursday afternoon.
Why does BONK crash?
The generally volatile crypto market has had a stunning 24-hour period, with the price of most cryptocurrencies rising significantly. With the market valuation of the entire crypto sector up 3.38% to $881.76 billion at the time of writing, the price of Solana’s viral memecoin BONK plummeted by comparison.
Despite the fact that the Solana community has rallied behind the cryptocurrency, citing it as “for the people, by the people,” its value has dropped 35% in the past twenty-four hours. Since it has significantly outperformed the market since the start of the year, it is not difficult to correlate the factors that led to the price drop.
BONK price in 24 hour chart
BONK’s Whale Activity
BONK has been subject to massive mass whale accumulation in recent weeks, with reports of wealthy wallet investors buying millions, if not billions, of the viral token. While zooming out in price, the token still maintains a solid return on investment and remains a leader in terms of price.
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However, after the current bearish blowout, the fully diluted market cap is down 32.61% to $102 million, while the altcoin’s 24-hour trading volume is up a whopping 200% to $36 million. This is a direct indication of the fact that a significant number of SOL whales are selling their BONK holdings to make huge profits.
BONK Price in 30 days chart
BONK Price to Turn Bullish?
On January 12, Solana NFT fans rejoiced at the release of the Bonkz NFT Collection, which immediately surpassed ABC, y00ts, and DeGods, among a number of other well-known NFT marketplaces on Solana’s blockchain. After the completion of the first sale, the developers of the NFT collection decided to burn as many as 13,900,000,000 BONK tokens. The Solana community believes that the burning activities will help maintain the memecoin’s market value over the long term.
— OMNI (@OMNIcreative_) January 11, 2023
As things stand, the price of Bonk (BONK) is currently trading at $0.000001014. This represents a 36% drop on the day, as opposed to an 837% gain over the past month, according to crypto market tracker CoinMarketCap.
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Pratik has been a crypto evangelist since 2016 and has experienced almost everything crypto has to offer. Be it the ICO boom, the bear markets of 2018, Bitcoin’s halving so far – he’s seen it all.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
This post Dogecoin-Killer BONK Crashes 40%, But Is There a Revival Plan?
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