5 Trillion BONK Token was Burned as Solana-Based Dog Coin Slides
The downward trend of Solana’s new doge coin BONK continues, despite a massive token burn by the team.
BONK Burn Event
BONK developers burned their allocation of 5 trillion BONK tokens last Friday, in a bid to stem the token’s bearish momentum.
After the token burn event, which saw nearly $1 million worth of BONK removed from circulation, BONK’s circulating supply shrunk 5% to 94.16 trillion, per data from Solana block explorer Solscan.
A token burn is a standard process to reduce a cryptocurrency’s supply, which—so the theory goes—can lead to an increase in the prices of the asset.
But BONK reacted otherwise.
At the time of the token burn, each BONK token changed hands at around $0.00000244, per data from CoinGecko. But as the time of writing, it was trading at $0.000001634, down about 17.5% in the past 24 hours, despite the dev team’s token burn.
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BONK token saw strong user activity
Despite its short-term adverse price action, BONK saw strong growth in user activity over the past week.
According to data from Dune Analytics, BONK has recorded over 4 million transactions over the past three days, a figure slightly higher than the total amount of transactions processed by the Ethereum blockchain over the same period.
The token has also seen its daily active users (DAU) increase over the past week. Nearly 15,000 users have interacted with the token over the past three days.
Daily active users is a measure to track the user activity associated with a dapp or cryptocurrency. The higher the value, the more interest in the token prevails in the market.
According to Solscan, as of this writing, more than 103,759 wallet addresses hold BONK coins, a number that has grown by 99.9% since Dec. 25, 2022.