A flat market and contagion risks aren’t stopping crypto traders from finding the next big narrative to generate returns, and a meme coin is at the heart of that in the Solana (SOL) ecosystem.
Bonk, a Shiba Inu token issued on Dec. 25, has returned 2,220% to traders over the past week, up 150% in the past 24 hours alone. The token was air-dropped to Solana NFT (non-fungible token) communities and creators, prompting rapid hype and trading volume for the token, CoinDesk reported on Tuesday.
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 – cumulatively raking 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.
The metrics made Bonk the most traded token on Orca, a popular Solana DEX, with trading volumes even higher than Solana, typically the most popular trading pair with USDC.
As such, returns are likely to be short-lived as demand and hype surrounding BONK subsides and traders take profits in the coming weeks.
Meanwhile, the interest surrounding bonk may have contributed to the demand for SOL tokens. The Solana network’s native token is up 16% over the past 24 hours, erasing losses from a sharp drop over the past week.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.