Last month, the Solana (SOL) ecosystem was in full bloom, led by the bizarre price explosion of memecoin Bonk (BONK). In a short time, the dog-themed token stormed to the top of the crypto market, but now the project seems to have disappeared from view for quite some time. Measured from its absolute high in mid-December, the BONK price has fallen by up to 70 percent.
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The Solana meme hype is cooling down
BONK started gaining momentum from November, but in the last month of the year, the price suddenly exploded. BONK has been listed on major exchanges such as KuCoin, Coinbase and Binance and is proudly included in the top 50 largest crypto coins.
On December 15th, BONK peaked All-time high of $0.00003419. On December 1st, the price was still at $0.000003865, which corresponds to a price increase of around 785 percent in around 2 weeks.
On October 21st, before the uptrend began, the price of BONK reached $0.00000019. This means that the price has experienced a disgusting increase of almost 18,000 percent in just under 2 months.
After such an absurd rise, a significant price correction is more than justified. The investors logically take their profits and the hype surrounding the project subsides. Since its absolute high in mid-December, the BONK price has already fallen by 70 percent.
Last week made a significant contribution to this. BONK has lost 23.5 percent in the last 7 days. This makes the memecoin one of the biggest losers last week among the top 100 crypto coins. BONK is currently ranked 90th in the broader crypto market with a market cap of over $644 million.
Risks of Crypto Trading
The recent downturn in Solana’s largest memecoin highlights the volatility and risks associated with investing in crypto. In the first weeks of December, BONK was completely in the spotlight, and many crypto fanatics were driven by FOMO (“fear of missing out”) to take part in the impressive price explosion.
Now that the price has undergone a major correction, many investors are deeply underwater. It emphasizes the importance of caution and an understanding of the short-lived nature of hype-driven market movements.
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