After recording significant capital inflow, meme cryptocurrency Bonk (BONK) is undergoing selling pressure, with the token’s initial hype appearing to fade.
At the moment, Bonk is controlling a market cap of $38.69 million, representing a loss of about $112.25 million within eight days. The token that seeks to emulate Shiba Inu (SHIB) had a market cap of $150.94 million on January 5, according to CoinGecko data.
Consequently, the selling pressure has affected BONK’s value, with the token trading at $0.00000089 by press time, representing a daily drop of over 15%. On the weekly chart, BONK is down about 100%.
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BONK’s loses momentum
Bonk is slumping, contrary to the general crypto market momentum, where most asses have turned green. The plunge has come despite the community taking measures like burning mechanisms to increase BONK’s utility. It can therefore be assumed that the BONK sell-off is due to initial investors taking profits.
Indeed, BONK recorded a price breakout from the rest of the market after the token was airdropped to Solana (SOL) developers and non-fungible tokens (NFT) communities. With the developers embracing the token, Solana also benefitted from recording a price surge after weeks of correction.
Overall, Bonk tokens recorded a steady rise, gaining by as much as 3,000% while receiving support from the Solana ecosystem. The rally saw BONK rank among the top meme cryptocurrencies to watch for January 2023 in a previous Finbold report. For instance, several Solana projects integrated Bonk for buying and selling listed NFTs.
Improving BONK’s utility
Furthermore, the Solana team revealed that millions of Bonk tokens had been burned, with the token also speculated to play a vital role in the upcoming Solana smartphone release.
In particular, Solana Mobile announced that five million Bonk tokens would be burned for every Solana Saga phone pre-order. Again, about five million BONK are expected to be airdropped in the wallets of the purchased Solana Saga smartphone.
Currently, BONK’s ability to stop the price slippage remains challenging, considering the token is yet to establish itself in the market. Despite attempting to emulate SHIB, the value of Bonk is taking the same trajectory as meme coins characterized by high volatility.
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