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 risen to the top 200 of the most capitalized cryptocurrencies.
An unexpected airdrop
While Solana (SOL) was struggling to recover from the FTX affair, now a new memecoin comes to rekindle the flame of the users of this blockchain. Called BONK, this crypto with the effigy of a Shiba Inu saw its price multiply by 10 in the space of just one week, and by 2 over the day.
BONK Price Rise in One Day
Specifically, the project’s website indicates that the ” BONK is the first dog-like cryptocurrency on Solana for the people, by the people.” In other words, yet another copy of the DOGE or SHIB. However, BONK has distinguished itself by offering an airdrop of tokens to holders of non-fungible tokens (NFTs) in the Solana ecosystem.
Within 24 hours, the BONK recorded nearly $30 million in volume on Solana’s decentralized platforms. It’s almost 70% of the volumes on Orca – the exchange on which the token is listed – and around 40% of the total volume traded on Solana.
According to data from the Dune aggregator, there are nearly 50,000 addresses that currently hold BONK. Nevertheless, the 20 largest holders alone own 50% of the total quantity in circulation. 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 freefall. Indeed, Sam Bankman-Fried’s two companies have invested heavily in blockchain since its launch in 2019. They were the biggest 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 grown from $1 billion to around $200 million. As for the price of the SOL, it fell from 36 dollars to less than 10 dollars, a drop of 75%.
Evolution of the total value blocked on the Solana blockchain (SOL)
Otherwise, Solana has seen many major projects go away having made the heyday of its ecosystem. We find in particular DeGods and y00ts, two successful collection of non-fungible tokens (NFTs), which announced their migrations to Ethereum and its second layer Polygon.
Is the arrival of this BONK token good news for Solana? In the short term, it has created a craze around the blockchain and show that the ecosystem can undeniably continue to exist without Sam Bankman-Fried and other investors.
However, it is important to emphasize that this BONK token is a memecoin and 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 may run out of steam soon.
In a bear market context, 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 dissect every detail of the exciting world of cryptocurrencies and make it accessible and understandable to as many people as possible.
Lilian Aliaga
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