Cryptocurrency

From 19,000% Gains to 50% Crash – Is the BONK Craze Over?

BONK coin took the crypto world by storm in late 2023, rapidly gaining over 19,000% in value since its October launch. However, after hitting a peak in mid-December, the meme coin has now dropped 50%, leaving investors wondering if the hype is over.


Keypoints

  • BONK coin surged rapidly, gaining over 19,000% since October but has now dropped 50% from its mid-December peak
  • The price decline is attributed to hitting a market correction phase after the huge spike, as well as trading dynamics from exchange listings and new trading bots
  • Further price drops are expected, with the 0.682 Fibonacci level seen as a potential target
  • There is still some optimism that BONK could rebound after the holidays, but the initial hype and price craze seems to be over
  • In the long run, BONK aims to help restore liquidity to the Solana ecosystem as a community meme coin

BONK rode the meme coin wave to meteoric growth, sparking excitement in the Solana community. The coin aims to help restore liquidity to Solana-based decentralized exchanges (DEXs) and provide a community token for use across dApps.

Its launch coincided with an immediate 34% Solana price bump. Listings on major exchanges like Binance and Coinbase further fueled the BONK frenzy. However, while listings can drive short-term gains, they often lead to post-listing dips as early investors cash out – a pattern seen in BONK’s trajectory.

BONK hit an all-time high of $0.000035 on December 15th before rapidly shedding 31% of its value the same day. This signaled strong selling pressure. It continued falling to $0.000017 on December 20th, a 50% decline from the peak.

Analysts attribute BONK’s dramatic drop to entering a correction phase after the unsustainably steep 2,247% climb over November-December. Corrections help rebalance prices after sharp rallies.

Additionally, Binance introduced new AI-assisted BONK trading bots on December 21st, adding complexity to trading dynamics. While designed to optimize trades, bots can increase volatility. Binance also offered BONK staking rewards to attract interest, but incentives proved insufficient to maintain prices.

The behavior mirrors trends in other post-listing meme coins like SHIB. A major exchange listing often precipitates a spike and correction. This suggests typical market mechanics for newly listed meme tokens.

While disappointing for investors, BONK’s developers remain upbeat. They anticipate a potential rebound, similar to recoveries in other cryptos following post-listing dips. However, broader holiday trends will likely keep the coin cooled off near-term before any resurgence of hype.

In the long run, BONK aims for real utility – restoring liquidity as a decentralized community token for the Solana ecosystem. But for now, the mania phase seems over as the coin settles into a more mature, less volatile state. Its future trajectory depends on rebuilding investor confidence and delivering on its core mission.

The post From 19,000% Gains to 50% Crash – Is the BONK Craze Over? appeared first on Blockonomi.

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