BONK, a Solana-based memecoin launched on December 2020, burned 1.69 trillion tokens worth $51 million during its “BURNmas”
Despite the setback, BONK remains the fourth-largest memecoin in a $105 billion market, trailing Dogecoin, Shiba Inu, and Pepe.
The Solana-based memecoin BONK has experienced a 7.2% decline in value despite a significant token-burning event dubbed “BURNmas.” This initiative removed 1.69 trillion BONK tokens, worth over $51 million, from circulation. The burn aimed to create scarcity and bolster the token’s price, but it failed to shield BONK from the ongoing cryptocurrency market slump.
The BURNmas Initiative
Initially announced in late November, BURNmas proposed burning 1 trillion BONK tokens through community-driven activities. The scheme incentivized engagement by committing to burn 1,000 BONK for every post on X using the hashtag #LetsBONK and 10,000 BONK for every new Instagram and TikTok follower. While originally planned for December 25, the event was delayed, with BonkDAO members eventually voting to increase the burn amount to 1.69 trillion tokens, which was executed on December 26.
The burn reduced the circulating supply by 1.85%, from 90.97 trillion tokens to its current levels, according to CoinGecko. Despite this significant effort, BONK’s price continued to fall, mirroring the struggles of the broader cryptocurrency market.
Price Decline Amid High Expectations
Historically, token burns have been used as a strategy to improve tokenomics by reducing supply and increasing scarcity. In November, a burn of 100 billion BONK tokens led to a 56% surge in price and propelled the token to a market cap of $4.38 billion within a week.
However, the December burn failed to replicate this success. Since the burn, BONK’s market cap has dropped to $2.3 billion, reflecting a 7.2% price decline. This comes as the cryptocurrency market as a whole faces downward pressure, further weighing on BONK’s performance.
Meanwhile, the digital asset is trading at $0.00003197 after a 5.41% surge in the past 24 hours.
The delay in executing BURNmas from its original Christmas Day schedule also appears to have contributed to BONK’s struggles. Some community members voiced their dissatisfaction with the lack of timely communication and adherence to the initial plan.
“You will lose so much progress and coin holders by lying to the community,” an X user named BestBets criticized, adding that trust in the project had diminished.
Another user, PootieCoin, echoed similar sentiments, stating, “I’m losing trust.”
BONK’s Position in the Memecoin Market
Despite the recent setback, BONK remains a significant player in the memecoin ecosystem. It is currently the fourth-largest memecoin, trailing only Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) in a $105 billion market.
Whether BONK can recover from its price slump and reignite investor confidence will depend on the project’s ability to deliver on promises and foster stronger community engagement. For now, the burn has demonstrated the limits of tokenomics in isolation, as broader market conditions and community sentiment continue to shape its trajectory.
