Developers Burn 5 Trillion BONK as Solana-Based Meme Coin Slides

BONK, a meme coin that is Solana-based was created by the developers burned their allocation of 5 trillion BONK tokens early Friday, in a bid to stem the token’s bearish momentum.

After the token burn event, which saw nearly $1 million worth of BONK removed from circulation, BONK’s circulating supply shrunk 5% to 94.16 trillion, per data from Solana block explorer Solscan.

A token burn is a standard process to reduce a cryptocurrency’s supply, which—so the theory goes—can lead to an increase in the prices of the asset.

BONK, however, reacted differently.

BONK price fall continues

Each BONK token was worth $0.00000244 at the time of token burn. Data from CoinGecko. The token’s value has fallen by around 12% and it trades at $0.00000192 at the time of writing.

Over the past 24 hours, BONK has lost nearly 50% of its value, despite the dev team’s token burn.

However, that pales in comparison to the meme coin’s weekly performance, which has seen BONK surge by 2,015%. BONK’s performance has also lifted Solana, which is up around 35% on the week (albeit dropping by around 2% in the past 24 hours).

Strong user activity

BONK experienced strong growth in user activity during the week despite its negative short-term price action.

Data from Dune AnalyticsBONK has recorded more than 4 million transactions in the last three days. This figure is slightly higher that the total transaction amount. processed The Ethereum blockchain was used over the same time period.

In the last week, the token also saw an increase in daily active users (DAU). In the last three days, close to 15,000 people have used the token.

The daily active user is a way to monitor the user activity related to a cryptocurrency or dapp. The token’s value is indicative of the market’s interest in it.

As of the writing, more than 103 759 wallet addresses have BONK tokens. This is a figure which saw a 99.9% growth since December 25, 2022 according to data from Solscan.