Bonk (BONK), the first dog-themed memecoin on the Solana (SOL) network, persisted in its upward trend despite the overall market downturn. Surging by 12% in the last 24 hours, it ranked as the second-highest gainer in the market.
Additionally, Bonk emerged as the best-performing asset of the past week, boasting gains of over 83%. This surge sparked heightened speculation and led to a significant increase in daily trading volumes, reaching levels not seen in over a month.
Token Burning Sparks BONK Rally
The recent surge in BONK’s value could be attributed to a proposal by the BONK DAO to burn approximately 280 billion BONK tokens from its treasury, which was subsequently approved.
Token burning has emerged as a highly anticipated event in the cryptocurrency industry. Many projects seek to implement strategies to apply deflationary pressure on their coins by permanently removing a portion of their supply.
With expectations of a price increase for BONK following the supply shock caused by the token burn, numerous users may have been enticed to acquire the coin, contributing to its rally.
Futures Traders Bullish on BONK
Amid BONK’s rally, futures traders exhibited optimism, with a notable increase in the number of traders longing the coin over the week. Analysis of Coinglass’ data revealed that this surge in long positions surpassed the number of shorts at the time of writing.
Source: Coinglass
BONK’s surge also garnered attention across prominent crypto-focused social channels, including Telegram, Reddit, and Discord. Discussions on these platforms predominantly expressed optimism regarding the coin’s future prospects, as indicated by the positive weighted sentiment indicator.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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