In the last 24 hours, traders have been buying a lot of BONK Tokens, causing its price to increase significantly. Could this indicate that the trend of Solana’s price might rally upwards again?
Bonk Drives Solana’s Price Up as Traders Look for New Opportunities
BONK, a meme token after Shiba Inu launched on Dec. 25, 2022, is currently driving Solana’s price up. Over the past 48 hours, the price of SOL has gained 34%, and in the past 24 hours, BONK Tokens have surged 117%, according to CoinMarketCap.
As the broader crypto market remains suppressed, traders are hoping BONK Token could present new opportunities in the crypto sphere.
Solana users received an airdrop of 50% of the token supply for BONK, the first dog token on the Solana blockchain.
The airdrop aimed to remove toxic Alameda-style token economics, resulting in over $20 million in trading volume on the Solana decentralized exchange Orca.
High BONK Yields for LPs
BONK is benefiting liquidity providers (LPs). On January 4, LPs earned over 999% APR with Bonk, much higher than the popular SOL/USDC pairing.
The high yields may not last however the current rates indicate a strong demand for BONK. Furthermore, BONK also burned 1 billion of its supply on January 3, which may have contributed to the increase in demand.
Solana Fees and Daily Active Users Surge – Is Bonk to Blame?
Solana saw an increase in fees and daily active users on Jan. 4, with an 18.6% increase in fees and a 15.8% increase in daily active users.
This led to a rally in the price of SOL which rose above $14 for the first time since December 14 last year. However, traders and investors in the cryptocurrency market believe that the growth of BONK could have contributed to this price action in Solana.
Solana Blockchain Demand
Lately, The demand for BONK, a meme token, has been rising. This is viewed as a positive development for the Solana blockchain. Additionally, the increase could lead to the realization of Vitalik Buterin’s desire for Solana to have a chance to thrive and succeed.
The Solana blockchain has been gaining traction in the cryptocurrency world. The growing interest in BONK means it will continue gaining popularity and adoption. The fact that there is increasing demand for it is still a positive sign for the Solana blockchain.
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