Solana Dog Coin Bonk (BONK) Soars 43%, Here’s Key Reason

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A canine-themed cryptocurrency called Bonk (BONK), which operates on the Solana blockchain, experienced a notable increase of approximately 43% due to a general uptick in meme coins and the suggestion of a significant burn of over 280 billion tokens from its treasury.

When I penned down these words, BONK had surged by 41.82% within the last 24 hours to reach $0.00002134. Its growth in the past week was also significant at 35.83%. Notably, the trading volume for BONK during this period increased a substantial 391%, amounting to a massive $431.53 million worth of transactions.

BONK reached peak prices at $0.00002192 during the trading day, building upon a three-consecutive-day increase that started from a low of $0.00001357 on April 18. Should today end with an uptick, BONK will have experienced four days of continuous growth in a row.

The price increase of Bonk lately can be explained by several factors, with the revival of meme coins being a significant one. As meme coins regained popularity in the cryptocurrency world, investors looked towards projects on the Solana platform for potential high yields.

The price surge of Bonk in recent times may not solely be attributed to the meme coin trend; instead, it could also be influenced significantly by a major plan to eliminate 280 billion BONK tokens from circulation.

In a recent tweet, it was mentioned that BONK DAO, the decentralized wing of BONK, has put forward a proposal to eliminate 280 billion BONK tokens from its treasury.

Community proposal is up❗️❗️❗️

— Bonk! (@bonk_inu) April 20, 2024

The BONK DAO suggests eliminating 278,393,137,215 BONK tokens from its reserve, which equates to the entirety of the BONK produced by BONK DAO through its revenue-sharing agreement with BONKBot since its inception in late 2023.

The trading bot named BONKBot on Solana’s Telegram platform was launched in November 2023. For every transaction processed by BONKBot, a fee of 1% is charged. Out of this fee, 10% is allocated to the BONK Decentralized Autonomous Organization (DAO).

When BONK tokens are used up in BONK DAO by being burned, the total amount of BONK in circulation will decrease. This action reflects the community’s preference for the DAO to reciprocate with a token burn as well, similar to what BONKBot consistently does.

The Bonk community is excitedly welcoming the proposal, viewing the planned burn as a constructive move for the coin’s market stability and development. Amidst the proposal’s pending approval, heightened anticipation has fueled a buying spree, causing Bonk’s price to surge.

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2024-04-21 15:50