The price of BONK, a meme coin built on the Solana blockchain, surged 10% after a proposal to burn 84 billion tokens was revealed. This news sent shockwaves through the crypto market, igniting investor interest and propelling BONK’s market capitalization to $1.64 billion.
The proposed burn, if approved, would significantly reduce the circulating supply of BONK. This strategy, a common tactic in the cryptocurrency world, aims to increase the token’s scarcity and ultimately drive up its value. The announcement reversed an earlier slump for BONK, with its price jumping from $0.00002 to $0.00002391.
This isn’t BONK’s first rodeo with token burns. Back in April, the BONK Decentralized Autonomous Organization (DAO) overwhelmingly approved a burn of a staggering 278.39 trillion tokens, demonstrating the community’s commitment to long-term value for the project.
Market analysts are optimistic about the latest proposal’s potential impact. The news triggered a 169% surge in trading volume, a clear sign of renewed investor confidence. While the proposal awaits final approval through a community vote, the market has already reacted positively.
Technical indicators on the BONK/USD price chart further fuel bullish sentiment. The Money Flow Index (MFI) suggests sustained buying pressure, while the MACD indicator confirms a strengthening uptrend. Additionally, the RSI points towards a potential price target of $0.00003600, potentially retesting its all-time high of $0.00004704 if the burn is approved.
The BONK community seems to be a driving force behind the token’s success. Their previous support for token burns and their current voting power demonstrate a strong commitment to the project’s long-term viability. With the community behind it and a potential supply decrease on the horizon, BONK appears poised for continued growth.