The dog-themed meme coin, Bonk Inu (BONK), has seen a significant 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, resulting in Bonk Inu becoming the largest meme coin by market capitalization in the Solana ecosystem, surpassing Dogwifhat (WIF).
Bonk Inu Surges Ahead Of Competitors
According 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 in the 52nd spot among the largest cryptocurrencies in the market, trailing behind Optimism (OP) and Sui (SUI).
However, in the top 100, Bonk Inu still lags behind larger meme coins such as 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 action, as the trio recorded significant losses of 13%, 5%, and 20%, respectively, over the past week, while BONK has surged by 3% during 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 approximately 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 common practice employed by crypto projects such as Shiba Inu to control inflation and overall token supply. By reducing the supply of tokens, the aim is to increase the value of the remaining coins and create a healthier ecosystem.
In the long run, burning tokens tend to support an asset’s price, making it a positive move, which may be one of the catalysts behind the recent surge in Bonk Inu’s token price observed over the past week.
Whale Accumulation
In addition to these positive developments, Bonk Inu has caught the attention of large investors, commonly referred to as whales.
A report from smart money tracker FishTheWhales reveals that there have been five alerts of whale accumulation and buyouts in the past week alone, with a 24-hour trading volume reaching $150 million.
Furthermore, crypto analyst Crypto Bull has identified an inverse head and shoulders pattern in Bonk Inu’s daily chart, indicating a potential continuation of the current price recovery.
The analyst suggests that BONK is the most “obvious” coin to experience a pump from its current position, with expectations for other meme coins to follow suit.
While the token is undergoing a minor correction from its trading price of $0.00002610, it remains 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