Developers at Solana-based memecoin project Bonk Inu (BONK) burned over 5 trillion tokens, or 5% of the total supply, on Friday, blockchain data shows. The move claimed to have effectively burned all tokens earmarked for developers on the project.
Members of the Solana community saw the burn as a step towards the legitimacy of the Bonk Inu project – one that bills itself as a token “for the people, by the people” by actively promoting insider token sales and predatory behavior avoids.
In the past 24 hours, centralized exchanges and decentralized applications alike have introduced bonk-based trading events and NFT coins, increasing the utility of the memecoin for traders and holders.
The data shows that over three million BONK transactions have taken place in the past three days, indicating active participation by holders. Unique BONK wallets have grown from under 25,000 earlier this week to over 86,000 on Friday.
However, large token sales have hampered bonk’s price surge, which is now over 2,000% over the past week. The tokens are down over 40% in the last 24 hours as early investors took profits and crypto exchanges like Bybit launched bonk futures that allowed traders to bet against the tokens.
Formed around the popular Shiba Inu dog breed and spurring popular projects like Shiba Inu and Dogecoin, the rapid rise of Bonk Inu can be attributed to several factors.
Last week, Bonk developers air-dropped 50% of their entire token supply to several Solana-based NFT collections and creators, prompting near-instant hype and market for the project.
Holders of a total of 297,000 individual Solana-based NFTs are said to have received the airdrop. Airdrops refer to an unsolicited distribution of a cryptocurrency token or coin, usually for free, to numerous wallet addresses and are generally used as a tactic to attract users.
The project actively evoked the “toxic tokenomics” of embattled funds like Alameda Research, which have been widely criticized for distributing a small portion of the token supply to retailers while retaining a majority for private investors and project developers.
The story goes on
Several Solana projects have already integrated bonk tokens for use as payments for listed NFTs, while some have introduced “burn” mechanisms for NFT-based events. Token burning means the removal of coins from the total supply of a cryptocurrency.
As such, liquidity pools on Solana-based decentralized exchanges (DEXs) like Orca have attracted over $20 million in volume for trading pairs with BONK — cumulatively bringing in thousands of dollars in liquidity provider fees.
Liquidity providers are investors who stake their cryptocurrency tokens on DEXs to earn transaction fees, usually in the form of token rewards.
Data from Orca shows that the BONK/SOL pair has generated over $14 million in trading volume, while the BONK/USD coin pair has seen over $6.2 million. Both pools pay nearly 1% to liquidity providers hourly, or over 24% per day.
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