The development team behind Solana-based memecoin project Bonk Inu (BONK) has revealed that more than 5 trillion tokens, or 5 percent of the total supply, have been burned.
Solana community members see the burn as a step towards the legitimacy of the Bonk Inu project which bills itself as a token “for the people, by the people” by actively avoiding internal token sales and looting .
Over the past 24 hours, both centralized exchanges and decentralized applications have introduced bonk-based trading events and NFT minting, increasing the memecoin’s utility for traders and holders.
3 million BONK transactions have taken place over the past three days, indicating active participation by holders. As of Friday, there were more than 86,000 unique BONK holding wallets, up from fewer than 25,000 at the start of the week.
However, the massive token sale held back the bonk’s price rise, which is currently up more than 2,000% in the past week. The token has fallen more than 40% in the past 24 hours as early investors took profits, while cryptocurrency exchanges such as Bybit launched bond futures, allowing traders to short the token.
The rapid rise of Bonk Inu, revolving around the popular Shiba Inu breed and spurring popular projects like Shiba Inu and Dogecoin, can be attributed to several factors.
Last week, Bonk developers airdropped 50% of their entire token supply to several Solana-based NFT collectibles and creators, causing the project to be hyped and marketed almost immediately.
A total of 297,000 holders of Solana-based NFTs are said to have received the airdrop. An airdrop is an unsolicited distribution of cryptocurrency tokens or tokens, usually for free, to multiple wallet addresses, often as a user acquisition tactic. The project aggressively calls out the “toxic token economics” of struggling funds like Alameda Research — which allocates a fraction of the token supply to retail traders while giving the majority of it to private investors and project developers has been widely criticized.
Several Solana projects have integrated bonk tokens as payment for listing NFTs, while some projects have introduced "burn" mechanisms for NFT-based events. A token burn means removing tokens from the overall supply of a cryptocurrency.
As a result, liquidity pools on Solana-based decentralized exchanges (DEXs) such as Orca have attracted over $20 million in volume for trading pairs involving BONK netting thousands of dollars cumulatively for liquidity providers cost of.
Liquidity providers are investors who stake their cryptocurrency tokens on DEXs to earn trading fees, usually in the form of token rewards.
