Bonk, which was launched on Dec. 25, 2022, as a tribute to Sam Bankman-Fried, has seen a massive price growth of 370% in the last month, reaching a market cap of $762 million as of Dec. 8, 2023. The token has outperformed other more established dog memecoins such as Shiba Inu (SHIB) and Dogecoin (DOGE), which posted respective gains of 20% and 35% in the same period.
Bonk’s rapid rise can be attributed to several factors, including its integration with various Solana projects, its listing on major centralized exchanges such as Binance and KuCoin, and its high trading volume and open interest on futures markets. Bonk’s developers, who are a team of 22 anonymous individuals, claim that their goal is to showcase the capabilities of the Solana ecosystem, which is known for its high speed, low fees, and scalability.
Bonk’s Skyrocketing Market Cap Is Due to Several Factors
Bonk is now the third-largest memecoin, behind DOGE and SHIB, which have market caps of $14.4 billion and $6 billion, respectively. Traders have swiftly taken advantage, increasing from $0.0000028 to $0.000012. This represents a significant growth. Bonk has also flipped Pepe, another memecoin that is based on the popular internet frog meme, which has a market cap of $675 million.
Pepe, which was launched in 2016, is one of the oldest and most influential memecoins, having spawned a vibrant community of artists and collectors who create and trade Pepe-themed NFTs. The notable rise of BONK in the recent month may be indicative of the current heightened interest surrounding the Solana ecosystem.
The ecosystem is garnering increased focus from traders, as demonstrated by its Total Value Locked (TVL) and the substantial growth of the majority of its projects. This includes its native SOL token, which has seen its price increase by more than threefold since mid-October.