Can the Solana blockchain recover thanks to Bonk?

More and more people abandoned the Solana (SOL) blockchain after the FTX incident. In the last few days, it has finally been able to regain some color.

4000% increase for BONK

The reason is the new release of a memecoin with the image of Shiba Inu. Known as BONK, it has climbed into the top 200 most capitalized cryptocurrencies.

The BONK cryptocurrency project on the Solana network was inspired by the Shiba Inu (SHIB), itself heavily inspired by Dogecoin (DOGE). These 3 memecorners are based on the Shiba Inu’s “animal cuteness” to convince users. However, BONK distinguished itself by offering a token airdrop to non-fungible token (NFT) holders in the Solana ecosystem.

“BONK is Solana’s first dog-like cryptocurrency for the people, by the people”

Cointelegraph presented the launch of BONK on December 25, 2022. It turned out that this new coin strongly attracted investors and even allowed the SOL token to regain its color!

Within 24 hours, BONK recorded nearly $30 million in trading volume on Solana’s decentralized platform. This trading volume represented 70% of the trading volume of Orca (the exchange on which the token is listed) and about 40% of the total trading volume of Solana.

Since the first days of January 2023, the enthusiasm around BONK has been particularly strong. In fact, its price has increased by more than 2900% in the last 7 days. Since its launch on December 25, it has risen by more than 4,000%, according to Coinmarketcap.

Meanwhile, SOL has finally (slightly) shaken off the troubles it’s been mired in, surging 35% in seven days. As of this writing, Solana’s native ticker is trading at $13.20.

According to aggregator Dune, about 50,000 addresses currently hold BONK. However, only the top 20 holders hold 50% of the total circulating supply. Therefore, this represents a big risk and after such an increase, investing in this token is strongly discouraged.

Beware of memecoins

Despite the enthusiasm surrounding this sign, caution should be exercised. First, the team that initiated the coin remains anonymous, which calls into question the credibility of such a project.

In addition, the token combines the characteristics of a marketing project, above all “fun” and surfing in some issues of the crypto ecosystem (the collapse of the Solana ecosystem, the bankruptcy of Alameda Research related to Solana, etc.).

Likewise, the project’s Twitter account, which already has over 67,000 followers, has made numerous announcements promoting the cryptocurrency, which is usually not a good sign.

It should be noted that this BONK token is a memecoin, it is not based on anything concrete. No base, unknown team, questionable tokenomics, purely speculative interest. In other words, everything points to the fact that its bull run may soon end.

Solana’s slow agony

Blockchain Solana has been in freefall since the bankruptcy of FTX and Alameda Research. In fact, two of Sam Bankman-Fried’s companies have invested heavily in the blockchain since its inception in 2019. They are the largest holders of SOL coins.

Looking at the numbers, the conclusion is clear: Solana is the big loser in this case.

The value circulating on the blockchain has grown from $1 billion to about $200 million. As for the price of SOL, it fell from $36 to less than $10, a 75% drop.

In addition, Solana has seen the initiation of many large projects that have taken its ecosystem to its peak. We can tell specifically NFT DeGods and y00tstwo successful collections of immutable tokens (NFT) that announced their migration to Ethereum and its second layer, Polygon.

Leave a Comment