Bankless: Why does BONK continue to soar?

Author: David C, Bankless; Compiled by: Deng Tong, Golden Finance

Now, this should be obvious, but Memecoin’s growth doesn’t always follow a rhyme or reason. That being said, BONK's recent craze has a lot going for it narratively.

Solana ’s Memecoin Bonk surged over 47% today and nearly 200% over the past week as The broader market rebounds and Bitcoin nears all-time highs. Amid this rally, Bonk's combined market capitalization has surpassed that of SUI, SEI, and TIA, and currently stands at $2.5 billion.

With Memecoin season upon us, last fall’s darling BONK is at the forefront, joining other dogecoins like SHIB and DOGE that are also on centralized exchanges It is widely used on the market and has seen a double-digit increase in price over the past 24 hours. Solana’s latest Dogecoin WIF is down around 15% in the past 24 hours, cooling off after rising around 400% last week.

If Bitcoin hits a new all-time high, triggering a wave of "FOMO" on the dollar, investors will bet on the whereabouts of retail dollars. Memecoin is always a promising option, but new coins with less baggage might be better.

Due to low fees, Solana has been designated as the Memecoin chain. This factor may also help promote BONK's develop.

BONK’s positioning coupled with its current higher price than those not listed on a major exchange Tokens such as WIF are easier to purchase, which may give BONK more momentum. Additionally, the price of any 1 BONK token is only a fraction of a cent, which may be due to the effect of Unit Bias - people tend to buy more tokens when they can, rather than buying more of them based on overall market capitalization.

Overall, the current craze surrounding Memecoin, coupled with Solana’s reputation, puts BONK in a good position. Memecoin season is a tough time to find any "fundamentals" and luck is often more than half the battle, but as more investors prepare for continued bull cycle action and predict retail returns, there are reasons to be bullish .