- Bonk DAO has burnt 1.69 trillion tokens, a move that could influence the price of the BONK, which has been down over 8% in the last 24 hours amid the reduced supply.
- Analysts remain optimistic about BONK’s future, noting a 6.95% gain over the past week, with the meme coin currently priced at $0.00003151, despite a muted response to the token burn.
The BONK Decentralized Autonomous Organization (DAO) has executed a major burn of 1.69 trillion BONK tokens, valued at an impressive $52 million, through its multi-signature wallet. The organization confirmed this event via its official X account. The strategic decision to burn these tokens is part of BONK’s ongoing efforts to optimize its tokenomics and create long-term value for its dedicated community.
Since its launch in December 2022, BONK has transformed from a simple meme coin to a key player in the decentralized finance (DeFi) sector, amassing a cult following along the way. The token serves multiple purposes, including governance, staking, and serving as a medium of exchange within the Bonk ecosystem.
The burn is part of the much-anticipated “BURNmas” initiative, which was originally designed to incinerate 1 trillion tokens. This scheme encouraged community participation by pledging to burn 1,000 BONK tokens for every post on X featuring the hashtag #LetsBONK, as well as 10,000 tokens for each new follower gained on Instagram and TikTok. Initially set to conclude on December 25, the initiative experienced a turning point when an amendment was voted on and approved on December 26, ultimately resulting in an exceptional total burn of 1.69 trillion tokens.
A Look at BONK’s Market Activity
The timing of the burn is particularly significant, given the rising competition in the meme coin arena with the launch of Pudgy Penguins (PENGU). Currently trading at $0.03545 with a market capitalization of $2.2 billion, PENGU has seen a remarkable price increase of over 18%, allowing it to surpass other Solana-based meme coins like Dogwifhat. PENGU has gained 25.6% over the past week, with impressive trading volumes reaching $901 million within 24 hours. This is the day after PENGU achieved its all-time high of $0.06845 on December 17.
As a result of this burn, the circulating supply of BONK has notably decreased from 100 trillion to 91 trillion tokens. Analysts are suggesting that this burn could trigger a supply shock, making the remaining BONK tokens more desirable to investors looking to capitalize on scarcity.
Looking ahead, the BONK ecosystem seems committed to expanding its focus beyond just token burns. The team has revealed intentions to assist projects that are being developed on BONK, aiming to generate further utility and value streams. Currently, the token is trading at $0.00003151, following an impressive year-to-date increase of 75% in value.
Over the past 24 hours, the trading volume for BONK has reached $254 million, showing a slight decline of 8.10% compared to the previous day, which suggests a recent dip in market activity. As we reported, BONK achieved its all-time high of $0.000059 on November 20, 2024. Market predictions indicate that the BONK token will rise by 30.39% by 2025.
