BONK, a popular Solana-based memecoin is experiencing two token burns that are changing its path. The community is buzzing about what the future holds for it. This article will analyze how the most recent updates on BONK development will affect the market situation.
Is BONK token burn a catalyst for a breakout?
Usually, a token burn announcement is a positive sign of the project’s growth trajectory. The procedure for burning reduces the token's overall circulating supply and contributes to the emergence of a price rally.
On November 17, BONK DAO (Decentralized Autonomous Organization) announced the burn of $1 trillion BONK. The operation is scheduled for December 25, 2024, and coincides with the coin's second-anniversary celebration. Removing a significant number of tokens may lead to lower, and BONK’s long-term price growth.
In the first 24 hours following the announcement, BONK recorded a significant gain of over 11% in market capitalization, surpassing Solana's leading meme coin, WIF (Dogwifhat), in this metric. This made BONK the most sought after memecoin on the Solana blockchain. BONK's market capitalization reached $3,94 billion compared to WIF's $3,60 billion. The news has sown FOMO (Fear Of Missing Out) among investors and led to a pump. Also, the bullish momentum will continue due to the generally positive sentiment in the meme coin market.
Have previous community burns boosted BONK's value?
In April 2024, the community approved the massive BONK burn of 278 billion tokens. The first result did not take long – BONK’s price rose significantly. This was evidence of the community's interest in the BONK future price development and support of the project overall.
The upcoming burn is expected to eliminate $84 billion BONK. This daring action has also caused immediate market reaction, in just 24 hours the price of BONK rose by 25,08% — from $0,000021 to $0,000027. Such a movement once again demonstrated the scale of community engagement. Moreover, this reflected the generally positive market sentiment about meme coins.
The autumn burn immediately increased BONK's market cap by 24,77% to reach $1,77 billion. Trading volume hit the $516,43 million threshold, composing 151,63% of the pre-burn amount. Needless to say, the project’s popularity became stellar.
Conclusion
This BONK burn rate is not just a strategy to reduce the trading volume. It represents the project's dedication to long-term growth and building community trust. Despite such positive responses and noticeable movements in the market, the question remains: will these burns be a catalyst that will spark BONK token price rally? Only the data and time will show.
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