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New memecoin experiences furious rise in price

Looking at the numbers, some people feel transported back to the time of the memecoin hype. Because the furious start of a new memecoin on Solana is strongly reminiscent of the mania surrounding Dogecoin and Shiba Inu a good two years ago.

BONK is the name of the new Token puppy, which, like its role models, is based on the Shiba Inu dog breed. Just over a week after launch, the token recorded an increase of 1,300 percent – ​​100 percent in the past 24 hours alone.

BONK weekly chart | Source: coinmarketcap.com

The project is now on course for Krypto’s Top 100. The recipe for success alongside the hype is now known. An absurdly low price label (currently five zeros after the decimal point). And an absurdly high total token supply, half of which was airdropped directly to community members and holders of various Solana NFTs.

However, the token is seemingly well received. Various Solana blockchain projects are already integrating the memecoin, for example for payments from NFTs. Yesterday there was also a notable on-chain record: BONK recorded more active wallets than the entire Polygon blockchain.

How long the hype will last remains to be seen. Once the madness takes its course, the forces at work are unpredictable – also in the opposite direction, by the way. Because in addition to the already volatile nature of the memecoin, the frosty crypto winter could also ensure that the emerging euphoria quickly suffocates again.

Solana’s best friend

At the very least, the new dog coin appears to be serving its home blockchain, Solana, well. Because that high transaction volumes generates high demand for SOL. This is back in double digits as of today and broke the twelve US dollar mark for the first time since Christmas.

Recent activity from wallets belonging to FTX, Alameda Research, and perhaps even Sam Bankman-Fried himself may suggest that their massive SOL holdings have been sold off in the past few weeks. Or perhaps investors, developers, and community members simply lost confidence in the token.

Today’s double-digit jump in share price is certainly a relief for many of you. Now it should be clear whether this is a classic bear market rally or whether the token can continue to recover.

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