The dog-themed meme coin, Bonk Inu (BONK), has seen a big price increase over the past 24 hours, reaching a one-month high of $0.00002698. The meme coin’s price jumped 10%, coinciding with the broader market rally, leading to Bonk Inu becoming the most important meme coin by market capitalization within the Solana ecosystem, surpassing Dogwifhat (WIF).
Bonk Inu Surges Ahead Of Competitors
In response to CoinGecko data, the recent surge propelled Bonk Inu’s market capitalization to $1.735 billion, surpassing WIF’s market cap of $1.69 billion. This places BONK within the 52nd spot amongst the most important cryptocurrencies out there, trailing behind Optimism (OP) and Sui (SUI).
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Top 5 largest Solana-based meme coins. Source: CoinGecko
Nonetheless, in the highest 100, Bonk Inu still lags behind larger meme coins corresponding to Dogecoin (DOGE), Shiba Inu (SHIB), and Pepecoin (PEPE), which have market caps of $15 billion, $9 billion, and $3 billion, respectively.
Despite this, Bonk Inu has outperformed these tokens in price motion, because the trio recorded significant losses of 13%, 5%, and 20%, respectively, over the past week, while BONK has surged by 3% throughout the same time-frame.
Token Burn Proposal
The recent surge in Bonk Inu’s price comes after an announcement from the coin’s decentralized autonomous organization (DAO).
The BONK DAO revealed on Monday that it had received a proposal to burn roughly 84 billion BONK tokens from its Treasury, representing the Q2 amount of BONK sent to the DAO from BONKBot, which is currently being voted on by the community.
Burning tokens is a standard practice employed by crypto projects corresponding to Shiba Inu to regulate inflation and overall token supply. By reducing the availability of tokens, the aim is to extend the worth of the remaining coins and create a healthier ecosystem.
In the long term, burning tokens are likely to support an asset’s price, making it a positive move, which could also be one among the catalysts behind the recent surge in Bonk Inu’s token price observed over the past week.
Whale Accumulation
Along with these positive developments, Bonk Inu has caught the eye of huge investors, commonly known as whales.
A report from smart money tracker FishTheWhales reveals that there have been five alerts of whale accumulation and buyouts previously week alone, with a 24-hour trading volume reaching $150 million.
Moreover, crypto analyst Crypto Bull has identified an inverse head and shoulders pattern in Bonk Inu’s every day chart, indicating a possible continuation of the present price recovery.
The analyst suggests that BONK is essentially the most “obvious” coin to experience a pump from its current position, with expectations for other meme coins to follow suit.
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The every day chart shows BONK’s price increase recorded over the past 24 hours. Source: BONKUSD on TradingView.com
While the token is undergoing a minor correction from its trading price of $0.00002610, it stays positioned to retest its next significant resistance level at $0.00002885.
This level is crucial for the meme coin’s prospects of regaining momentum and potentially revisiting its all-time high of $0.00004547, achieved in March.
Featured image from DALL-E, chart from TradingView.com