Can BONK really save Solana from ruin?

BONK is a meme coin, similar to Dogecoin or Shiba Inu, but specifically developed for the Solana blockchain. Solana is known for fast transactions and low fees, but also for major difficulties following the FTX bankruptcy and technical outages. This has affected the confidence of some users and investors.

The extremely high interest in the Bonk token, which led to high demand and the sell-out of the Saga phone, could provide short-term attention. At the end of December, the manufacturer posted an official announcement on X that the phone on which the Bonk token was airdropped was sold out. Devices are now available again.

BONK is not an ordinary meme coin

As of January 1, 2024, the price of the new meme coin BONK had risen by an incredible 7,000 percent compared to the previous year. The phenomenal growth has caught analysts’ attention and many investors are wondering what makes the coin so special. Since October 2023, investors have been able to earn returns on their BONK tokens without having to deposit a second asset.

Meme coins are not designed for a specific use case, but are actually intended solely for entertainment and social sharing. While BONK, DOGE and SHIB are similar in that they feature a cute dog as their mascot and logo, the Solana coin still differs from other meme coins in several ways.

BONK is built on Solana, the blockchain network often referred to as the Ethereum killer. Blockchain is fast, scalable and cost-effective. Smart contracts can be developed on it. There are currently over 400 decentralized apps running on the Solana blockchain.

What is BONK?

BONK was released on December 25, 2022 via a random and anonymous AirDrop as a Christmas gift to the Solana community. 50% of the total supply of 100 trillion BONK coins was distributed to Solana users who contributed in some way to the development and growth of the Solana network. The integration into the Solana ecosystem will bring thousands of new users into the community in one fell swoop.

Through distribution via the Saga Phone, device users suddenly became investors in BONK. Strengthening the Solana community is one of the big goals of the BONK token. The developers want to end the dominance of large meme projects, which is mainly created by well-known investors and celebrities. This approach is supported by the fact that 50% of the total token supply has gone to the community.

According to CoinGecko, the 1-year correlation between SOL and BONK is currently 0.76. The coin is accepted as a payment option for NFTs on several platforms such as OpenBook and Orca. As a Solana-based token, BONK is also listed on numerous crypto exchanges such as Coinbase, Binance and Serum.

How does BONK work?

The community-oriented nature certainly makes BONK unique in the meme sector, but other meme coins also rely on a strong community, especially Sponge V2. The redevelopment of the Sponge Coin became necessary because the community was pushing for new functions. These are now integrated into the business model and bring direct added value for investors.

At BONK, 15% of the total supply went into a DAO, which takes over control of development. The DAO is responsible for making decisions regarding the future development and governance of BONK. Anyone who owns BONK tokens can participate in the DAO by voting on proposals or submitting their own ideas

The BONK coin has a maximum supply of 100 trillion, with 60 trillion in circulation as of mid-December last year. At the same time, BONK was ranked third among meme coins by market capitalization, after DOGE and SHIB.

Does BONK have a future?

In the long term, Solana’s stability and success depends on factors beyond the popularity of a single token. These include technical reliability, scalability, developer support, and adoption through real-world use cases. BONK is the lifeline for the Solana network, some say. Others see this as just further evidence of the stability of the Solana blockchain.

Other factors driving BONK’s price momentum included the recent announcement on December 14 last year that blue-chip listed exchange Coinbase would list the token. The great potential of the BONK token certainly also includes the recognizable Coinbase effect. The listing of the BONK token on one of the mainstream platforms contributes to great investor activity and drives the BONK price.

Today 1 BONK costs 0.00001047 euros and fell almost 4 percent over the course of the day. Last week wasn’t rosy for the Bonk token either, as its price fell by over 22 percent. The increases for the past month were still almost 90 percent, but unfortunately these are gradually disappearing into thin air.

What BONK alternative is there?

The Sponge Coin is currently in its second version on the market. The new meme coin is now available as $SPONGEV2 and can be locked directly in Sponge’s staking pool. Investors who had already invested in the first version simply exchange the first version for the new version using a stake-to-bridge function. They also stake their tokens directly in the smart contract and earn staking rewards.