Hype surrounding Solana-based meme token Bonk (BONK) has died down. The meme coin is dropping in value and is worth nearly 22% less than it was seven days ago.
The dog-themed coin, which blew up this month, is currently priced at $0.00001492, according to CoinGecko. That’s a 7.5% 24-hour drop.
Perhaps even more indicative of waning investor interest is BONK’s plunge since the all-time high it touched on December 15: it is now down by over 56%.
And BONK’s market cap is now sitting below the $1 billion it touched a fortnight ago. It now stands at $907 million and the token has dropped to the 84th largest crypto-asset. It reached the very meme-friendly 69th spot on December 14.
Still, the token is up significantly since its launch last Christmas—by 17,196%—so long-term investors are in the black.
As Decrypt previously reported, Solana developers were given the meme tokens in an airdrop last year. If they held the asset and didn’t sell, they will have made astronomical returns.
Like many meme coins and tokens, BONK is an extremely volatile cryptocurrency and is likely to be replaced by another one soon.
Such assets, which are based on Internet jokes and memes, disappear almost as quickly as they spring into existence. They rarely have utility other than making some lucky investors big gains.
Solana (SOL) has been the coin of the moment this month and last. Now the fifth biggest cryptocurrency by market cap, it made a comeback in November after investors bet on the digital coin to drop in value.
The asset then as a result jumped in price as short-sellers had to exit their positions and buy back more SOL to cover their losses—a phenomenon known as a “short squeeze.”
More and more serious investors have seen utility in the coin and its network, which is cheaper and faster than Ethereum’s.
This has led to a short-term explosion in the price of other coins and tokens which run on Solana’s blockchain, such as BONK and meme coin Dogwifhat (WIF).
Edited by Stacy Elliott.
