Doge-Themed BONK Token Takes Off, Sends Solana Price Up 22%
Solana price rallied sharply to around $13, and the reason for this week’s buzz appears to be a new dog-themed token called BONK.
Last week, Solana (SOL) price fell to its lowest level at nearly $8 since February 2021. But its price has rallied more than 22% in the past 24 hours after almost nine days of consecutive losses. At the time of writing, SOL is trading at $13.66.
Amid Solana’s movement, the two largest cryptocurrencies by market cap, Bitcoin and Ethereum, both shifted less than 1% in the past 24 hours, showing some stability.
Solana has been volatile for a number of reasons in recent weeks, including one of its most prominent backers being the now-disgraced former FTX CEO Sam Bankman-Fried and top NFT projects planning to leave its blockchain.
Hypes around the newly launched BONK token seems to be the reason
But some are crediting the recent spike to interest from Solana community members in Bonk (BONK), a new meme token that airdropped about 50% of its 56 trillion token supply to users last week. Airdropping is when a cryptocurrency sends a free supply of its token to a number of crypto wallets in a way to gain users or reward loyal community members. In this case, Bonk was airdropped to “We’re here to reward everyone that made #Solana what it is today,” the Solana-focused dog coin tweeted about a month ago before gaining traction.
About 20% of Bonk’s total airdrop supply went to Solana NFT collections, which consisted of almost 300,000 individual NFTs. The shiba inu dog-themed crypto has risen about 83% in the past 24-hours, according to CoinMarketCap data.
Even some major Solana projects have considered (or did) adopt the newly launched token from large decentralized exchanges like Orca to NFT markets like Magic Eden.
While Bonk achieves success, it’s highly likely that it will have a similar fate to other meme or dog-themed crypto tokens that often see a pump, followed by a steep dump and little to no recovery. However, in the meantime, it has helped the Solana ecosystem gain momentum in a time when many crypto players thought it was doomed.
As Solana has recovered slightly, its future remains uncertain even amid its dog coin-related hype. As of today, Solana has dropped from the fifth-largest token in early November to 15th-largest and is the number one trending crypto on CoinMarketCap.