Dog-themed meme coin Bonk Inu (BONK) has seen a significant price surge over the past 24 hours, reaching a one month high of $0.00002698. The meme coin’s price jumped 10%, coinciding with the broader market rally, resulting in Bonk Inu becoming the largest meme coin by market cap in the Solana ecosystem, surpassing Dogwifhat (WIF).
Bonk Inu emerges ahead of competitors
According to CoinGecko datathe recent surge has boosted Bonk Inu’s market cap to $1.735 billion, surpassing WIF’s market cap of $1.69 billion. This places BONK in the 52nd position among the largest cryptocurrencies in the market, behind Optimism (OP) and Sui (SUI).
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However, in the top 100, Bonk Inu still lags behind larger meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepecoin (PEPE), which have market caps of $15 billion, $9 billion, and $3 billion, respectively.
Despite this, Bonk Inu has overcame these tokens in price action as the trio recorded significant losses of 13%, 5%, and 20% respectively last week, while BONK was up 3% during the same period.
Token Burn Proposal
The recent surge in Bonk Inu’s price comes after an announcement from the coin’s decentralized autonomous organization (DAO).
THE BONK DAO revealed on Monday that it received a proposal to burn approximately 84 billion BONK tokens from its Treasury, representing the amount of Q2 BONK sent to the DAO by BONKBot, which is currently being voted on by the community.
Token burning is a common practice employed by crypto projects such as Shiba Inu to control inflation and the overall supply of tokens. By reducing the supply of tokens, the goal is to increase the value of the remaining coins and create a healthier ecosystem.
Long-term, burning tokens tend to support the price of an asset, making it a positive move, which could be one of the catalysts behind the recent surge in Bonk Inu token price seen last week.
Whale Accumulation
In addition to these positive developments, Bonk Inu has caught the attention of large investors, commonly referred to as whales.
A report from smart money tracker FishTheWhales reveals that there were five whale accumulation and acquisition alerts last week alone, with 24-hour trading volume reaching $150 million.
Additionally, crypto analyst Crypto Bull identified an inverse head and shoulders pattern on the Bonk Inu daily chart, indicating a potential continuation of the current price recovery.
The analyst suggests that BONK is the most “obvious” coin to experience a surge from its current position, with expectations that other meme coins will follow suit.
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Although the token is currently undergoing a minor correction to its trading price of $0.00002610, it remains poised to retest its next significant resistance level at $0.00002885.
This level is crucial for the meme coin’s prospects of regaining momentum and potentially revisiting its all-time high of $0.00004547, reached in March.
Featured image of DALL-E, chart from TradingView.com