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The price of Solana has been skyrocketing, whereas the rest of the market is quiet. Will the new dog coin, Bonk, save the ecosystem in 2023?
Memecoins led the bull rally in 2021, with the likes of Dogecoin and Shiba Inu making new highs. The market is yet again witnessing a new memecoin gaining popularity in the initial days of 2023.
The first native Solana dog coin has sparked the community’s interest in the ecosystem. While the overall market is trading flat, the price of Solana has spiked by over 63% within a week from a low of around $8.
What is Bonk?
Bonk has taken the crypto market by storm with its airdrop. 50% of the token supply is airdropped to the Solana community consisting of individual NFT holders, Openbook traders, Solana artists, and Solana developers, according to the official website.
The dog token has already attracted various marketplaces and exchanges. Magic Eden, the marketplace on Solana, teased integrating Bonk. Huobi listed the coin today; spot trading will start when the deposit volume meets the demand of market trading.
The Solana Lifeline?
The FTX collapse impacted the Solana ecosystem hardest, with Alameda Research being one of the largest holders of Solana. The Bonk website states, “The Bonk contributors were tired of toxic “Alameda” tokenomics and wanted to make a fun memecoin where everyone gets a fair shot.”
The project aims to bring back liquidity to the Solana ecosystem, which fell off a cliff after the collapse of FTX. According to data from DefiLlama, the Total Value Locked (TVL) is down by nearly 80% since Nov. 6. The Solana ecosystem had a TVL of $1 billion, but due to the FTX fallout, it currently stands at almost $200 million.
The community is bullish and feels that Bonk is the lifeline for Solana. But, with every new token listing comes the highest risk. There needs to be more background about the project or its team, which is missing. Investors should do their own research before putting their money in this highly volatile market.
According to data from CoinMarketCap, Bonk is up 132.94% in 24 hours. The trading volume in decentralized exchanges alone is over $21 million, up by 910% today.
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For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
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