The past week has been a wild ride for the recently minted dog-centered meme currency BONK. The Solana-based memecoin, which suddenly came out of nowhere and quickly made its way into the top 200 cryptocurrencies by total market cap, was hit hard by a powerful bearish trend late Thursday evening.
Price of BONK crashes by 40%
As speculation circulated that the creators of BONK would sell their assets, a number of Solana whales liquidated their BONK holdings. This caused BONK’s market value to drop by as much as 54% over the course of 24 hours. Despite the significant drop in price, the memecoin is still positive after gaining 1509.7% in the previous week.
After the current bearish blowout, the altcoin’s 24-hour trading volume is down 43.40% to $63 million, while its market cap is down 0.3% to $93 million. This is a direct response to the falling market price after a large number of SOL whales began withdrawing their BONK holdings and making huge profits. One cryptocurrency investor in particular admitted on Twitter that he sold $700,000 worth of BONK shortly after buying it for just $330.
I had to dump. Stop dumping and shaming me 🙄 $BONK pic.twitter.com/x5SmBEoB9l
— mfckr.eth 🦇🔊 (@mfckr_eth) January 5, 2023
BONK’s price for dumping more?
However, according to the token’s richlist data, the top 20 wallet addresses hold nearly 50% of the token’s circulating supply. This has led many to believe that the token can be manipulated and dumped by major wallet holders. Furthermore, if conspiracy theories are to be believed, some also suspect that disgraced crypto magnate, Sam Bankman-Fried, is behind it all – as the creator of the now-defunct FTX exchange was heavily involved in the development of Solana (SOL ) & ecosystem.
#BONK is a scam coin. The top 20 holders own 50% of the total tokens. A mess is inevitable.
But what is even more scam is all the other tokens created on the other side #blockchains #Solana #Ethereum #Polygon #BSC pic.twitter.com/RzVmWv6vhz— Claudio (💙,🧡) (@CDG_BTC) January 5, 2023
Read more: What causes Cardano (ADA) price to rise against Dogecoin and XRP?
The price of memecoin had recently risen due to the coin burn announcement, in which the developers stated that all five trillion BONK tokens allocated to them had been destroyed. Given the current volatility in the cryptocurrency market, it’s hard to say what the future holds for BONK’s price. Since BONK has recently shown itself to be in disrepair, many onlookers have predicted that it would eventually fall to the ground.
As things stand, the price of Bonk (BONK) is currently trading at $0.000001610. This represents a 2% drop in the past 1 hour, as opposed to the 40.11% drop in the past 24 hours, 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 Solana’s BONK crashes by almost 40%; Has the bull been run over?
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