Solana-based meme coin Bonk recently made headlines after burning 1.69 trillion BONK tokens in a community holiday token burning event called “BURNmas.” The event, which took place on Dec. 26, saw over 1.8% of BONK’s total supply being burned, amounting to tokens worth over $51 million.
The original plan for the token burning event was to burn 1,000 BONK for every post that used the hashtag #LetsBONK, and 10,000 BONK for every new follower gained on Instagram and TikTok. The initial target was to burn 1 trillion tokens, but due to higher-than-expected engagement, the community voted to increase the burn amount to 1.69 trillion tokens.
Token burns are a common practice in the crypto space, especially among meme coins like BONK. By reducing the circulating supply, token burns aim to increase scarcity and potentially drive up the token’s value. Previous token burn events for BONK have resulted in significant price rallies, but the recent BURNmas event did not have the desired impact, with the token dropping over 7% following the burn.
Several factors may have contributed to the decline in BONK’s price, including a broader downturn in the crypto market driven by Bitcoin’s struggle to break above $100k. Additionally, low trading activity over the holidays and delays in executing the token burn may have dampened investor confidence.
Another potential reason for BONK’s price drop is the growing popularity of Pudgy Penguins’ token, Pengu (PENGU). PENGU quickly gained a market cap of over $2.2 billion and briefly surpassed BONK as the largest meme coin on the Solana blockchain. PENGU has outperformed BONK in recent days, gaining over 32% compared to BONK’s 7.2% rally.
Despite the recent price drop, BONK managed to recover slightly, forming a god candle on its daily chart. If more investors jump on board, the token could see a rise towards the key resistance level at $0.000034. This level has been tested multiple times by BONK in the past week but has yet to be breached.
Overall, while the recent token burn event did not have the desired impact on BONK’s price, the meme coin continues to attract attention in the crypto space. Investors will be watching closely to see how BONK performs in the coming days and whether it can recover from its recent price drop.