Bonk Crypto Skyrocketed by over 200% in the Past 24 hours. Will This Be Enough to Save Solana?

 

As a result of the widespread PUD produced by rumors and speculation about its ties to the scandal-plagued cryptocurrency exchange FTX, the Solana ecosystem found itself in deep water.

 

The ecosystem has been working to disassociate itself from FTX’s former CEO Sam Bankman-Fried ever since the exchange’s collapse; on December 15, Messari released a comprehensive review of the ecosystem and how the implosion has affected it.

 

But recently, a new initiative called Bonk has been making headlines, soaring up in price, and providing Solana with some much-needed relief from its difficulties.

 

 

What Is BONK and What Does It Mean for the Solana Ecosystem?

 

 

The Solana community is what made the Solana ecosystem amazing in the first place, and Bonk is a symbol of that, as stated on the Bonk website. It’s the first “for the people, by the people” Solana dog coin.

 

“The Bonk contributors are tired of poisonous ‘Alameda’ tokenomics and wanted to build a fun memecoin where everyone has a fair shot,” the website reads.

 

As a result, the Solana token has gained 214% over the past 24 hours, indicating that this news was well received by the Solana community and the cryptocurrency industry as a whole. Solana Legend, co-founder of Frictionless Capital, recently tweeted that Solana’s usage has increased due to the memecoin, with the blockchain now recording 3,300 transactions per second.

 

This measure shows that the “Ethereum killer” Solana is alive and well, with an optimistic community backing it. As a result of the token’s high burn rate and the addition of Bonk to trade on major exchanges, Bonk is gaining a strong reputation. The dog meme currency has big shoes to fill. Many people, for instance, wonder if this solution will prevent the extinction of the Solana.

 

 

WE BURNED 1 BILLION BONK TOTAL TODAY 🔥😱 pic.twitter.com/XDHP2YzXzu

— degen poet ⚛️⚡️ (@degenpoet) January 4, 2023

 

 

 

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Extreme Yields and Vague Whitepaper

 

 

In 2023, the most popular memecoin, Solana, is not without its share of confusion. Their white paper is extremely imprecise, including simply the allocation of 100 trillion tokens.

 

Orca, a Solana on-chain liquidity AMM, reports that Bonk’s hourly charge of above 1% for supplying liquidity is unsustainable. However, this may just be a temporary solution to the problem of raising funds from local investors.

 

Although half of the entire supply of BONK tokens was airdropped, early contributions may cause investors to be skeptical of the remaining half. To alleviate this concern, there is a three-year vesting period for early contributors to the project, during which time they cannot spend the tokens assigned to them.

 

It’s vital that we recognize the contributors’ motivation to return control to the people of Solana. But the white paper is vague about the specifics of their strategy. Although Bonk does increase the value of SOL, it is unclear whether or not the final product will live up to expectations.