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End of the Road for Bonk? Solana Meme Coin Nosedives Towards Zero
- Solana’s price has burst past USD $100, with native memecoin BONK caught up in the hype.
- However, the bubble appears to have burst, with BONK trading 21% lower over the past 24 hours.
- It appears BONK’s peak coincided with the news of the Solana phone, Saga, selling out.
- Meme coins are extremely volatile and are prone to major ups and downs.
The hype around Solana has reached deafening levels over the past few weeks, with the DeFi network exploding to over USD $100 (AUD $146) and boasting record-high transaction volumes. BONK, a Solana-hosted meme coin, had originally come along for the ride, delivering 300% gains since the start of December. However, the mystique surrounding the dog-themed cryptocurrency seems to be evaporating, as the coin plummeted 20% in the last day alone.
BONK to Zero?
The equation for investors is now pretty simple: will BONK stay afloat?
The project isn’t exactly brimming with utility. To be blunt, it doesn’t really do much at all other than promote a long-standing cultural phenomenon of the cryptosphere – the Doge meme. Coins like BONK are often extremely mercurial, making it somewhat unclear to analysts what exactly causes the price to rise and fall.
Some have speculated that BONK’s peak came alongside the furor around Solana’s native crypto phone, Saga. Those who purchased Saga were airdropped 30 million BONK – which, at the top of BONK’s price run, was worth nearly USD $200 (AUD $292) more than the phone’s RRP. However, as the hype around the phone slowly started to die amid concerns over its utility and efficiency, so too did BONK’s uptrend.
BONK’s Volatility a Reminder of the Fickle Nature of Meme coins
BONK may not fall all the way to zero – especially if it’s a legitimate project and not a pump-and-dump scheme, as some in the community have suggested.
Either way, those who got caught up in the FOMO of Bonk’s meteoric rise were served a lesson about how dangerous meme coins can be. While those who strike gold can benefit from such a project’s wild swings, its lack of utility leaves it at the mercy of emotion-based trading.
It’s always good to remember that investing in a meme coin is a bit like stepping onto a rollercoaster – it’s meant to be a bit of fun, a cultural, communal experience. But as a serious, long-term investment? You should probably look elsewhere.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
