5% of the available quantity of bonk tokens were burned due to the prior day’s 40% decline in price.
Blockchain data reveals that earlier on Friday, the developers of the Solana-based memecoin project Bonk Inu (BONK) burnt more than 5 trillion tokens or 5% of the entire supply. The action was said to have essentially burnt all the tokens designated for the project’s creators.
Members of the Solana community saw the burn as a step in the right direction for the Bonk Inu project, which aggressively avoids exploitative conduct and claims to be a token “for the people, by the people.”
For traders and holders, the memecoin’s utility has increased as a result of the introduction of bonk-based trading events and NFT mints in the last day on both centralized exchanges and decentralized platforms.
Data reveals that almost three million BONK transactions were made over the last three days, indicating that holders were actively involved. By Friday, there were more than 86,000 unique BONK holding wallets compared to fewer than 25,000 at the beginning of the week.
Large token sales have slowed down bonk’s price increase, which has now increased by more than 2,000% in the last week. Early investors seized their profits, and cryptocurrency exchanges like Bybit created bonk futures, enabling traders to wager against the token, which caused the token price to drop by more than 40% over the previous day.
Several reasons have contributed to the rapid ascent of Bonk Inu, a cryptocurrency based on the well-known shiba inu dog breed that inspired initiatives like Shiba Inu and Dogecoin.
A market for the project was created for Bonk almost immediately after its designers airdropped 50% of its entire token supply to a number of Solana-based NFT collections and producers last week.
According to reports, 297,000 distinct Solana-based NFT holders received the airdrop. An airdrop is an uninvited, usually free release of a cryptocurrency token or coin to a large number of wallet addresses. They are frequently used as a user acquisition technique.
The initiative openly denounced the “toxic tokenomics” of troubled funds like Alameda Research, which came under fire for giving regular traders only a small portion of the token supply while reserving the rest for private investors and project creators.
Several Solana projects have already allowed bonk currencies to be used as payment for listed NFTs, and some have even implemented “burn” techniques for NFT-based events. The overall supply of coins in a cryptocurrency is reduced by burning tokens.
For trading pairs including BONK, liquidity pools on Solana-based decentralized exchanges (DEXs) like Orca have generated over $20 million in activity, generating thousands of dollars in fees for liquidity providers.
Investors that stake their cryptocurrency tokens on DEXs are known as liquidity providers. They get transaction fees, often in the form of token rewards.
According to Orca data, the BONK/SOL combination has seen trading activity of over $14 million, while the BONK/USD coin pair has seen trading volume of over $6.2 million. Both pools distribute more than 24% of their daily payouts, or around 1%, to liquidity providers.
