Why Is BONK Price Pumping Over 20%

As the global crypto market makes a recovery from a recent downturn, Bitcoin and popular altcoins are following suit. BONK, a meme coin based on the Solana ecosystem, is also making a mark in the market rally. The price of the token surged more than 20% sparking the interest of both analysts and investors. Let’s delve deeper into factors driving the strong performance of BONK price.

Current Market Performance of BONK Price

BONK price is trading today at $0.00002662, demonstrating an increase of 25.28% over the past day. Although it seems the meme coin faced challenges last month decreasing by 5.45% in price, the past week looked promising, reporting 1.96% in gains.

The token’s market cap has also skyrocketed to $1.83 billion, ranking 45th, according to CoinMarketCap. The market is experiencing heightened activity, as shown by a 158.75% surge in trading volume, to reach 558.26 million, over the past 24 hours.

BONK price achieved its all-time high milestone of $0.00004704 on Mar 04, 2024, but has since declined by 44.06%.

Reasons BONK Price is Surging

Various factors are behind the price surge of BONK.

1. Treasury Token Burn Proposal

BONK’s price surge was triggered by the recent proposal from the BONK treasury to burn 84 billion tokens, with the goal of decreasing the total supply and increasing the token’s worth.

The plan to destroy 84 billion tokens is still pending community approval, yet its effect on market dynamics is evident. This action mirrors a previous decision made in April by the BONK Decentralized Autonomous Organization (DAO) to authorize the burning of 278.39 trillion BONK tokens. The strong investor confidence in the token’s management and market strategy is evident through the community’s overwhelming support, at a 99.9% approval rate.

If accepted, the latest proposal will result in the destruction of 83,917,950,070 BONK from the treasury, which is equal to all the BONK acquired by the DAO through its revenue-sharing deal with BonkBot in Q2. The BONK DAO’s dedication to enhance community participation in decision-making processes is highlighted by this burn initiative.

Every BONK holder’s wallet can join the vote by staking their tokens throughout the six-day voting period. Each wallet’s voting power is determined by the proportion of the total supply it holds, and all BONK deposited can be withdrawn after the vote concludes.

2. Trade Volume Increase

According to Coinglass data, the trade volume of BONK has surged by 168.98% to reach $216.59 million. This increase in trading signals a rise in interest and demand.

3. Options Market Activity

There has been a rise in both open interest (+33.60% to $10.14 million) and volume in the BONK options market, indicating a heightened interest from derivative traders.

4. Long/Short Ratios

The long/short ratio for BONK is higher on Binance and OKX exchanges, showing more traders going long than short. This sentiment among traders has the potential to push prices higher as more investors anticipate an increase in price.

Conclusion

The increase in BONK’s price as the general crypto market recovers, demonstrates how strategic decisions and investor sentiment interact. The suggested burning of 84 billion tokens, the significant increase in trade volume, along with rising activity in the options market and favorable long/short, have played a crucial role in the rise of BONK price. While the community anxiously anticipates the final decision on the burn proposal, the memecoin’s success highlights the impact of strong market strategies and community involvement in achieving significant profits in the unpredictable realm of cryptocurrencies.