Solana-based memecoin $BONK has been the talk of the town following its impressive bullish rally which took its price to a new all-time high. This record was made at $0.00003416 on 15 December on the back of over a 100% surge.
The remarkable price increase has placed $BONK closer to the market capitalisation of $2 billion. At the time of press, it reigned as the best performer in the top 100 cryptocurrencies by market cap.
Changing hands at $0.00002625, the token has witnessed over a 120% weekly price jump, as of writing. It has been on a steady uptrend since the start of this month.
What triggered the uptrend?
After placing the memecoin on its experimental phase called the “roadmap” program, crypto exchange Coinbase announced the listing of $BONK on the Solana network on 13 December. This reinforced its price performance amidst a wider cryptocurrency market rise.
It was soon followed by the world’s largest crypto exchange Binance’s decision to list the asset on its platform as well. However, it warned users that the token “poses a higher than normal risk, and as such will likely be subject to high price volatility”.
“Please ensure that you exercise sufficient risk management, have done your own research in regards to BONK’s fundamentals, and fully understand the project before opting to trade the token”, Binance added.
Withdrawals will be available from 16 December on Binance. The $BONK listing fee has been set at 0 $BNB. The exchange also plans to add the memecoin as a borrowable asset on its Isolated Margin program a day later after this.
Coinbase, on the other hand, had started the trading of the memecoin on 14 December after liquidity conditions were met. BONK-USD trading pairs were then launched in phases once sufficient supply of this asset was established.
Users were advised not to send the asset over other networks as the funds could be lost.
The Solana effect
Another reason for $BONK’s steady price rise has been its connection to Solana which has been one of the best performers of the crypto market in the past several months.
$SOL is currently the sixth largest cryptocurrency by market capitalisation. It recently surpassed the $70 mark, which was an impressive 600% increase compared to the start of this year.
At the time of press, the coin managed to climb closer to its next key price level of $80 as it was seen changing hands for $78 on the back of an 8% daily rise. It is also trading in the green side of its chart, up by over 10% weekly.
Solana’s crypto phone ‘Saga’, launched in May, also got sold out in the US in what was seen as a $BONK-driven demand. According to Solana co-founder, Raj Gokal, less than 5,000 of these phones are now available, that too only in Europe.
Solana also tried “limiting” sales in order to ensure a fair distribution of the crypto phone. They noted:
“We’re here to share the Saga experience with everyone. In light of the overwhelming response, we’re limiting Saga purchases to one per household. This ensures that more of our community can enjoy the Saga.”
