Developers Burn 5 Trillion Worth Of BONK Tokens to Reduce Price Drop
The decline in the price of the Doge-themed BONK meme coin based on the Solana network continues, even though the team has burned a considerable amount of tokens.
The incineration process is a standard technique in the cryptocurrency industry; it involves reducing the number of coins to increase the asset price. However, this is just a theory that is not always 100% certain; the BONK token is a prime example.
Based on data from Solscan (a Solana block-checking company), 5% of the nearly $1 million worth of tokens were withdrawn from circulation during the BONK token-burning process. Developers reduced the total amount to 94.16 trillion tokens remaining in circulation.
The BONK token continues to drop in price.
The BONK token has lost almost 44% of its value in the last 24 hours, even though the developers burned it. According to data from CoinGecko, the BONK token was selling for approximately $0.00000244 at the time of the burn. Since then, it has lost roughly 12% of its value and at the time of writing is trading for just $0.00000170.
Over the past week, the price of the BONK token has increased by 2.015%. This BONK increase has helped Solana, which has gained about 35% in the last week.
User activity is growing.
Despite the unfavorable short-term price, BONK has seen a significant increase in user activity over the past week.
Based on data from Dune Analytics, the BONK token had more than 4 million transactions in the last three days. This number is slightly higher than the total number of transactions processed by the Ethereum blockchain over the same period.
In the past week, the token also saw a higher percentage of daily active users (DAUs). Nearly 15,000 users interacted with the token in the past three days.
The daily active user count is a metric for tracking user activity associated with a dapp or cryptocurrency. The higher it is, the more interest in the token prevails in the market.
At the time of writing, according to Solscan, more than 103,759 wallet addresses are holding the BONK token. This figure shows that there has been a 99.9% increase since December 25, 2022.
Source: decrypt.co
analyst opinion
Jakub Odvářka
The incineration process is a standard technique in the cryptocurrency industry; it involves reducing the number of coins to increase the asset price. However, this is just a theory that is not always 100% certain; the BONK token is a prime example.
Based on data from Solscan (a Solana block-checking company), 5% of the nearly $1 million worth of tokens were withdrawn from circulation during the BONK token-burning process. Developers reduced the total amount to 94.16 trillion tokens remaining in circulation.
The BONK token continues to drop in price.
The BONK token has lost almost 44% of its value in the last 24 hours, even though the developers burned it. According to data from CoinGecko, the BONK token was selling for approximately $0.00000244 at the time of the burn. Since then, it has lost roughly 12% of its value and at the time of writing is trading for just $0.00000170.
Over the past week, the price of the BONK token has increased by 2.015%. This BONK increase has helped Solana, which has gained about 35% in the last week.
User activity is growing.
Despite the unfavorable short-term price, BONK has seen a significant increase in user activity over the past week.
Based on data from Dune Analytics, the BONK token had more than 4 million transactions in the last three days. This number is slightly higher than the total number of transactions processed by the Ethereum blockchain over the same period.
In the past week, the token also saw a higher percentage of daily active users (DAUs). Nearly 15,000 users interacted with the token in the past three days.
The daily active user count is a metric for tracking user activity associated with a dapp or cryptocurrency. The higher it is, the more interest in the token prevails in the market.
At the time of writing, according to Solscan, more than 103,759 wallet addresses are holding the BONK token. This figure shows that there has been a 99.9% increase since December 25, 2022.
Source: decrypt.co
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