Solana-based meme token Bonk has continued its bearish surge despite the project recently burning 1.69 trillion BONK tokens.
On December 26, more than 1.8% of BONK's total supply, amounting to 1.69 trillion tokens worth over $51 million, were burned as part of a community token burning event for the dog-themed meme coin called "BURNmas."
Initially proposed in late November, the project Planned to burn 1,000 BONK for every X post using the hashtag #LetsBONK, and 10,000 BONK for every new follower gained on Instagram and TikTok, with the ultimate goal of burning 1 trillion tokens. The idea was to stimulate community engagement and increase the token's visibility during the holiday season.
However, due to higher than expected engagement across social media platforms, the initial target of 1 trillion tokens was surpassed. In response, BonkDAO members voted in favor of an updated proposal to increase the burn amount to 1.69 trillion tokens.
The symbol is burning It is common in the crypto space, especially among memes like BONK, which has a total supply of 100 trillion tokens, now down to 90.97 trillion after the recent burn.
By permanently removing a portion of tokens from circulation, these events aim to tighten supply dynamics, theoretically enhancing scarcity, and thus increasing the value of the token.
For example, after BONK's previous token burn event on July 29, when 84 million tokens worth over $2 million at the time were removed from circulation, it caused the token to rise by 25%.
However, this time, the BURNmas spectacle failed to pan out, as the token fell more than 7% after the event as its market cap reached around $2.3 billion.
Why is the price of BONK falling?
Although there was no strong reason that led to the sell-off, BONK (Bonk) The decline coincided with a Wider contraction In the cryptocurrency market, fueled by risk-off sentiment driven by Bitcoin's lackluster performance, it is struggling to recover above the $100K mark. In addition, the holiday-induced decline in trading activity caused BONK volume to decline by more than 8% over the past 24 hours.
Frustration also arose among many BONK fans Express Dissatisfaction with the team's failure to implement the token burn on Christmas Day as originally promised. This delay may have dented investor confidence and contributed to the sell-off.
Another possible reason for the decline in BONK is that many investors may have rotated their investments in the Pudgy Penguins token, Pengu (PENGU). Just days after the launch of PENGU collected With a market capitalization of over $2.2 billion, it even briefly surpassed BONK as the largest meme coin on the Solana blockchain on December 26.
The token also outperformed BONK over the past week, rising more than 32% compared to BONK's 7.2% rise.
At the time of writing, the token had formed a divine candle on the daily chart, which is usually a sign of whale activity. The sudden price surge managed to mitigate some of the day's losses, bringing the token's price to $0.000030.
If more investors follow suit, it could lead to the coin's next rally towards the key resistance level at $0.000034, a level that BONK tested twice this week but failed to break.
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