Increasingly abandoned following the FTX affair, the Solana (SOL) blockchain has finally regained some color in recent days. In question: the airdrop of a new memecoin with the effigy of a Shiba Inu. Called BONK, it has climbed into the top 200 of the most capitalized cryptocurrencies.
An unexpected launch
While Solana (SOL) was struggling to recover from the FTX deal, now a new memecoin arrives to rekindle the flame of the users of this blockchain. Called BONK, this crypto with the effigy of a Shiba Inu has seen its price multiply by 10 in the space of just one week, and by 2 in the space of a day.
BONK Price increase in one day
In particular, the project website indicates that the ” BONK is the first dog-like cryptocurrency on Solana for people, by people. In other words, yet another copy of the DOGE or SHIB. However, BONK has distinguished itself by offering a token airdrop to non-fungible token (NFT) holders in the Solana ecosystem.
Within 24 hours, the BONK had a volume of nearly $30 million on Solana’s decentralized platforms. It is almost 70% of the volumes on Orca – the exchange on which the token is listed – and its surroundings 40% of the total volume traded on Solana.
According to data from aggregator Dune, there are nearly 50,000 addresses currently holding BONKs. However, the 20 largest holders alone own 50% of the outstanding total. Something to warn about the risks: it is obviously strongly discouraged to invest in this token.
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BONK brings hope to Solana
Since the bankruptcy of FTX and Alameda Research, the Solana blockchain was in free fall. Indeed, Sam Bankman-Fried’s two companies have invested heavily in blockchain since its launch in 2019. They were the major holders of SOL corners.
In terms of data, the finding is clear: Solana is the big loser in this case. The value circulating on the blockchain has increased from $1 billion to around $200 million. As for the price of the SOL, it dropped from $36 to less than $10, a 75% drop.
Evolution of the total value locked on the Solana blockchain (SOL)
Otherwise, Solana has seen many big projects fail having made the heyday of its ecosystem. We find in particular De Dei and y00ts, two successful collections of non-fungible tokens (NFTs), which have announced their migration to Ethereum and its second-tier Polygon.
Is the arrival of this BONK token good news for Solana? In the short term, she has created a craze around the blockchain and demonstrate that the ecosystem can undeniably continue to exist without Sam Bankman-Fried and other investors.
However, it is important to point out that this BONK token is a memecoin and that it is not based on anything concrete. There are no fundamentals, the team is unknown, the tokenomics are questionable and the interest is purely speculative. In other words, everything suggests that its bullish rally could peter out soon.
In a bear market environment, it is obviously strongly discouraged to invest part of your portfolio there.
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Sources: DefiLlama, Dune
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Journalist for Cryptoast, I strive to analyze every detail of the exciting world of cryptocurrencies and make it accessible and understandable to as many people as possible.
Lillian Aliaga
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