BONK Leads Meme Coin Rally with 25% Surge Amid Token Burning, Whale Activity

Solana based meme coins To beat (BONK) haw has overshadowed all meme coins among the top 100 cryptocurrencies with a surge of over 25% in the last 24 hours.

At the time of writing, BONK is up 24.3% over the past 24 hours, trading at $0.000026 according to CoinMarketCap. The cryptocurrency’s market cap has surpassed $1.8 billion, surpassing Dogwifhat (WIF), another competing dog-themed meme coin based on Solana, whose market cap was 1.71 billion.

BONK Price Chart 24 hours | Source: CoinMarketCap

The meme coin’s daily trading volume has increased by 155% over the past day, reaching $544 million. However, BONK is still down 44% from its all-time high of $0.000047, which was reached on March 4.

Bonk, a meme coin that gained popularity in 2023, has seen a significant increase as the meme coin craze has caused Solana’s value to rise.

Initially known as another dog-themed meme coin, Bonk has expanded its utility to include decentralized finance (DeFi) integration. The project also collaborates with cross-chain communication protocols, NFT markets, and various other cryptocurrency market ecosystems.

BONK trading pairs are now available on major exchanges such as Binance, Coinbase, OKX and Bitstamp.

BONK’s latest price spike follows a July 8 post on X by BONK DAO, the decentralized autonomous organization that oversees the Bonk project. The post announced a proposal to burn 84 billion BONK tokens (worth $2 million) from its Treasury, which is now in effect. These 84 billion tokens were transferred to the DAO by BONKBot during Q2.

Token burning, the process of permanently removing a certain number of tokens from circulation, often results in a decrease in supply. This reduction in the total available supply can create a scarcity effect, potentially increasing demand and driving up the price of the token.

Furthermore, according to an X send According to whale watcher FishTheWhales, whales are buying BONK, further contributing to its price increase.

BONK’s recent price surge also coincides with a broader rally in meme coins.

Among them, the frog-themed Pepe (PEPE) emerged as the second-best performer on Tuesday, with holders gaining over 12% in the past 24 hours. The Ethereum-based token has seen a 42% increase in volume, reaching $1.12 billion, the highest among meme coins.

Other popular meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) also saw gains, rising 3.9% and 3.11%, respectively.

Overall, the meme coin market cap has increased to $42.53 billion, marking a 7% increase in the last 24 hours.

This rally in meme coins comes as major cryptocurrencies like Bitcoin start to recover after dropping below $55,000 on July 5the lowest point in the last five months.

Last week, Bitcoin (BTC) closed around $55,850, down 11% from the previous week’s close of $62,775. Significant selling pressure pushed BTC as high as $53,500 on Thursday before bouncing to $58,250 and settling at $55,850.

During this recession, Spot BTC ETFs saw net inflows of $238 million. Cumulative trading volume since their inception is approximately $315 billion, reflecting a decline in trading activity typical of Q3.

Matteo Greco, research analyst at Fineqia International, told crypto.news that this decline in activity should be viewed as a seasonal trend rather than a negative one. Interestingly, recent price behavior has not been correlated with BTC spot ETF flows, a departure from historical patterns where ETF flows have significantly impacted prices.

“For the first time since their inception, there is a clear decoupling between price action and capital flows, indicating that recent price behavior has been driven primarily by trading activity within the crypto-native space,” Greco said.

On Tuesday, Bitcoin rose more than 3% over the previous day to hit $57,515, with 24-hour lows and highs of $55,256 and $57,879, respectively.

Bitcoin dominance slightly decreased by 0.26% to 53.64%, indicating increased activity in the altcoin market. The global cryptocurrency market cap increased by 3.4% to $2.12 trillion.

The remarkable growth of the meme coin market is often linked to the performance of Bitcoin, given its influence on the broader cryptocurrency market.

When Bitcoin does well, it typically increases investor confidence and interest in alternative coins (altcoins), including meme coins. This effect can create a positive feedback loop, where rising prices attract more investors, driving prices up even further.

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