Dogecoin-Killer BONK Drops 40%, But Is There A Recovery Strategy?
In the weeks following its debut, the value of BONK, a recently debuted canine-themed memecoin, has fluctuated wildly. At around midday on Thursday, a strong bearish trend hit the Solana-based coin, which had seemingly emerged out of nowhere to enter the top 200 cryptocurrencies by market value.
How come BONK keeps crashing?
Even by the standards of the unpredictable cryptocurrency market, the last 24 hours have been spectacular, with the majority of cryptocurrencies seeing huge price increases. The market value of all cryptocurrencies has increased by 3.38% to $881.76 billion as of this writing, while the price of Solana’s viral memecoin BONK has fallen in comparison.
The Solana community has been rallying around the cryptocurrency, proclaiming it to be “for the people, by the people,” yet in spite of this, its value has dropped by 35% in the last 24 hours. It’s easy to understand why its price fell given how much it’s outperformed the market since the beginning of the year.
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BONK’s Whale Activity
During the past few weeks, BONK has been the target of large accumulation by whales, with tales of investors with deep pockets purchasing millions or perhaps billions of the viral coin. The token’s price may be rocketing upwards, but it’s still offering a healthy return on investment and is in the lead in terms of its market value.
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But after the recent negative outburst, the altcoin’s 24-hour trading volume skyrocketed 200% to $36 million, while the fully diluted market cap plunged by 32.61% to $102 million. That many SOL whales are unloading their BONK holdings for huge profits is evident from this trend.
Is the BONK price about to rise?
On January 12, Solana NFT enthusiasts celebrated the launch of the Bonkz NFT collection, which quickly exceeded ABC, y00ts, and DeGods, among other prominent Solana blockchain NFT shops. The NFT collection’s creators opted to destroy all 13,900,000,000 BONK tokens once the ICO concluded. Members of the Solana community are burning memecoins in the hopes that this will protect their value in the long run.
— OMNI (@OMNIcreative_) January 11, 2023
At this time, one Bonk (BONK) is worth exactly $0.000001014. As reported by cryptocurrency market cap tracker CoinMarketCap, this is a drop of 36% on the day, in contrast to a gain of 837% over the last month.