Early on Friday, the developers of the Solana-based memecoin project Bonk Inu burned about 5 trillion tokens, or 5% of the total supply. The action allegedly burned all tokens set aside for project developers.
In the previous 24 hours, prices have dropped by about 50%, and 5% of the team's allotted token supply has been burned.
Memecoin's utility for traders and holders has increased over the past day thanks to the implementation of bonk-based trading events and NFT mints on Gate.io and CremaFinance exchanges.
More than four million transactions were registered over the previous five days, demonstrating that holders were actively engaged.
By Friday, there were more than 72,000 unique holding wallets, up from about 25,000 at the beginning of the week.
On the other hand, significant token sales have slowed Bonk's price increase, which has already exceeded 2,000% in the previous week. The price of the tokens fell by 50% in the previous day as early adopters made money and crypto exchanges like Bybit introduced bonk futures that allowed traders to bet against the currency.
The token experienced a sharp drop from $0.000004825 to $0.000002066 between January 5 and 6, 2023.
The quick rise of Bonk Inu, which is based on the well-known Shiba Inu dog breed and was the inspiration for projects like Shiba Inu and Dogecoin, has been attributed to a number of factors.
After the project's creators airdropped 50% of its entire token supply to a handful of NFT collections and producers situated in Solana last week, a market for the project quickly developed.
According to reports, 297,000 distinct Solana-based NFT holders received the airdrop. Airdrops, which are frequently used as a user acquisition method, are the uninvited distribution of a cryptocurrency token or coin, usually for free, to a large number of wallet addresses.
Furthermore, the BONK/SOL coin combination has seen trading activity worth over $14 million, while the BONK/USD coin pair has witnessed trade worth over $6.2 million. Both pools distribute more than 24% of their daily payouts, or about 1%, to liquidity providers.