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Bonk, a Shiba Inu token released Dec. 25, has returned 2,220 percent to traders over the past week, including a 150 percent surge over the past 24 hours. Some traders believe that the token’s trading volume is driving Solana’s price higher. SOL price is up 34 percent in the last 48 hours. Despite Solana’s movement, the two largest crypto assets by market cap, Bitcoin and Ethereum, both moved less than 1 percent, indicating some stability. While the overall crypto market remains subdued, traders are hoping that Bonk will provide new opportunities during the downturn. Bonk is a new meme token that gave away about half of its 56 trillion token stash to users last week. Bonk is the first dog token on the Solana blockchain. Initially, 50 percent of the token supply was airdropped to Solana users with the aim of eliminating the toxic Alameda-style token economy. According to Solana decentralized exchange Orca, the airdrop resulted in more than $20 million in trading volume. According to Orca data, the BONK/SOL coin pair has recorded over $14 million in trading volume, while the BONK/USD coin pair is over $6.2 million. Both pools pay out nearly 1 percent per hour to liquidity providers, or more than 24 percent per day. However, early investors aren’t the only ones benefiting. Liquidity pools on Solana-based decentralized exchanges (DEXs) like Orca have attracted over $20 million in volume for trading pairs with BONK, earning liquidity providers thousands of dollars in fees. This is arguably the most encouraging sign for the Solana market in the past two months, following the collapse of crypto exchange FTX in early November, SOL’s price fell and dampened enthusiasm in the space. As Bonk gains traction, it may follow in the footsteps of other meme- or dog-focused crypto tokens, which often see a pump followed by a steep drop and little to no recovery. Meanwhile, it had played a key role in propelling the Solana ecosystem into prominence at a time when many crypto players thought it was doomed. Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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