Over the past month, the price of the Bonk cryptocurrency (BONK) on the Solana network has increased by 471.3%. Why is there such a significant price increase? What are the factors behind this positive trend?
On December 9, the price of BONK broke through the historical maximum (ATH) at $0.00001464, thereby surpassing the “meme” leaders of the crypto market - Dogecoin (DOGE) and Shiba Inu (SHIB) in daily growth. According to CoinGecko, in the last 24 hours alone, the value of BONK has increased by 14.2%.
Capitalization exceeded $750 million, and trading volume over the past 24 hours reached $151 million. The significant growth of the token is due to several factors.
Factor #1: good sentiment in the crypto market
First of all, the active growth of many coins, including the native token of the Bonk project, is influenced by the positive mood of crypto investors. It, in turn, is associated with the excitement around the potential launch of the first spot Bitcoin ETF in US history.
Thus, last week Bitcoin (BTC) reached a new high of $44,313. At the time of writing, the price of the first cryptocurrency had rolled back to $42 thousand.
Factor #2: listing on major crypto exchanges
On November 23, the largest crypto exchange Binance launched open-ended futures trading on BONK. In addition, the token was also listed by the KuCoin crypto platform.
The upward movement of the asset was especially facilitated by additional advertising of the native token of the Bonk project. Thus, KuCoin offered prizes worth up to $58 thousand for purchasing a new coin on the site.
Factor #3: Optimism for the Solana Ecosystem
At the end of this year, SOL became one of the fastest growing altcoins on the market. For the first time in several years, the token price exceeded $60 and is now trading at $69.53, according to CoinGecko.
On December 7, the value of blocked funds in the Solana network also reached its annual maximum. Thus, the figure amounted to $1.19 billion, which corresponds to the level that preceded the collapse of the FTX crypto exchange.
About the BONK token
BONK is the first dog-themed “meme” cryptocurrency in the Solana ecosystem, launched in December 2022. Then, in the first week of trading, the token rate increased by 3,766%, primarily due to the airdrop. During the free distribution, 50% of the total number of coins was transferred to the blockchain community on which the asset was built.
According to the creators of BONK, their main goal is to return liquidity to decentralized exchanges (DEX) on Solana. The original idea of the developers was to create a universal coin that could be used across all decentralized applications (dApps) in the ecosystem.
