Bonk, a Solana Governor-themed memecoin, has become incredibly popular over the past few weeks. The price recorded a historic 1000% increase in just a few days, surpassing previous records for other memecoins. This made the token the third-largest memecoin by market capitalization, replacing Pepe. The token is also recording billions of dollars in trading volume, indicating huge interest among market participants.
Similar trends have been seen before, but let’s understand what has caused this dramatic rise.
- Binance wasted no more time with Shiba Inu & Pepe. The platform listed these tokens, driving their prices up significantly, followed by an extended descending consolidation.
- With this, many exchanges such as Coinbase, KuCoin, Crypto.com, etc. have also listed the token.
- Investors seem to have caught on to FOMO, as we have previously seen with other popular memecoins.
- BONK’s upward trend is also intertwined with Solana’s impressive performance in 2023.
- BONK’s impact goes beyond transactions. Because Saga phones are flying off the shelves as users chase the 30 million BONK airdrop.
- The BONK craze extended to the Saga Discord server, with newcomers picking up the phone to qualify for the airdrop, making the phone a hot commodity.
Will history repeat itself? Will market participants be separated from BONK?
Previously, it has been observed that popular and popular tokens generate more expectations from market participants. During the 2021 bull market, investors had more faith in Dogecoin. Dogecoin soared 10 to 15 times, but eventually lost all of its money. Moreover, a similar trend has been seen with SHIB and PEPE, but market sentiment is still bullish on these tokens.
These short-term rallies are typically used to generate profits, which are then used to buy back Bitcoin or Ethereum. Therefore, once the BTC rally begins, these memecoins may enter a prolonged consolidation and experience minor pullbacks, as happened with DOGE, SHIB, and PEPE. Currently, DOGE price is struggling to rise above $0.1, while SHIB is utilizing all its strength to stay above $0.00001, PEPE is close to $0.0000015, and ATH is $0.7376, $0.00008845, and $0.000004354 respectively.