Meme coins have been around for a while, with the most popular being, Dogecoin, and Shiba Inu. A meme coin is a cryptocurrency created as a joke or for entertainment rather than as a serious investment.
They are often based on internet memes, with developers intending to make them humorous or satirical. However, meme coins generally have little or no real value. Instead, developers often use the coins to mock the hype and speculation that can surround the cryptocurrency market.
Bonk
A recent meme coin Bonk dominates the sector as the first meme coin on the popular Solana blockchain. Bonk’s official Twitter handle has added fuel to the internet speculation by saying that the “Bonk” token has burned approximately half a trillion dollars of the token, making it one of the most active token burn operations in the cryptocurrency market.
The Solana Blockchain airdropped the token to specific community members, such as Solana NFT owners and art collectors, to popularize the token. According to Solana, the developers want to have fun and bring relief to the toxic cryptocurrency industry.
According to the developers, 55% of the total supply of Bonk will go to the Solana community, with around 20% going to the blockchain’s NFT collections, 10% to Solana artists and collectors, and 15% will go to early traders.
How Bonk Helps Solana
The price of the cryptocurrency Solana (SOL) dropped significantly last week and has been unstable in recent weeks. The blockchain’s recent problems are due to various factors, such as the involvement of the ex-CEO of FTX, Sam Bankman-Fried, and the departure of leading NFT companies from its blockchain.
The Solana community is facing challenges, with the decentralized exchange system Serum on the Solana blockchain announcing its closure and the Solana cryptocurrency wallet Phantom adding more compatibility with Polygon and Ethereum.
The price of the cryptocurrency SOL increased by almost 20% in the last 24 hours after experiencing nine days of declines and trading at less than $10. However, according to Coinglass, the funding rates for SOL permanent swaps are negative, indicating a bearish sentiment and short positions on the token.
The recent price increase resulted in almost $6.7 million in liquidation in short positions, the largest such liquidation since the collapse of the FTX exchange in November. In the same period, the on-chain volume of the cryptocurrency Bonk exceeded $18 million, and the price of Bonk increased by around 95%.
On the other hand, meme coins like Shiba Inu (SHIB) and Dogecoin (DOGE) remained unchanged. Crypto enthusiasts can purchase the token at CoinMarketCap using cryptos such as ETH and Bitcoin.
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