- The ongoing rally might have been spurred by a massive token burn program.
- Most discussions around the meme coin on social media were positive.
Bonk [BONK], the first dog-themed memecoin on the Solana [SOL] network, continued to defy the broader market pullback. According to CoinMarketCap, the crypto lifted 12% in the last 24 hours, becoming the second-highest gainer in the market.
Moreover, It was the best performing asset over the last week, recording gains more than 83%.
The speculation has resulted in a sharp increase in daily trading volumes, hitting levels last seen more than a month ago, AMBCrypto noted using Santiment’s data.
Source: CoinMarketCap
What is driving BONK?
The ongoing rally might have been spurred by a proposal by the BONK DAO to burn nearly 280 billion BONK tokens from its treasury, and its subsequent passage.
Token burning has become one of the most sought-after events in the crypto industry over the year. Several projects look for ways to apply deflationary pressure on the coin by permanently removing a portion of its supply.
Anticipating a price increase for BONK due to the supply shock, many users might have been tempted to grab the coin.
Market optimistic about BONK
The optimism was also apparent in the way the futures traders were betting on BONK. The number of traders longing the coin rose sharply over the week, and exceeded the number of shorts as of this writing, as per AMBCrypto’s analysis of Coinglass’ data.
Source: Coinglass
Realistic or not, here’s BONK’s market cap in BTC’s terms
BONK’s pump also made it a talking point in some of the top crypto-focused social channels, including the ones on Telegram, Reddit, and Discord.
Most of the discussions on these forums were optimistic on the coin’s prospects, as explained by the positive weighted sentiment indicator.
Source: Santiment
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