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- Solana memecoin BONK has hit the $2 billion valuation mark.
- BONK’s recent success may be tied to both spot Ethereum ETF hype and Solana’s popularity.
Bonk (BONK), the dog-themed memecoin on the Solana blockchain recently reached a new milestone with its market capitalization soaring to over $2 billion. Notably, this milestone follows a 35% surge in the price of BONK and highlights the growing adoption of memecoins in the crypto market.
History of BONK’s Rise
Launched in December 2022, BONK is a memecoin inspired by internet jokes and creativity. Upon launch, 50% of the total supply of 100 trillion coins was distributed to Solana users who contributed to the development and growth of the network in some way. This strategy has increased its trading volume and visibility, demonstrating a unique way to increase adoption in a competitive market.
According to the latest Marketcap data, BONK is ranked the 54th largest cryptocurrency by market cap, which stands at $2.1 billion. The recent BONK price increase may have been caused by spillover from the uptick in the broader crypto market.
Bitcoin (BTC), the world’s leading digital asset saw its price move above $70,000 after a long consolidation period within the $60,000-$70,000 range. In a similar move, Ethereum (ETH) also moved past the $3,700 mark following a short-term volatility.
BONK’s listing on Bithumb, a renowned Korean crypto exchange, has also contributed to its price surge. According to a prior report by Crypto News Flash, BONK soared to a 10-day high of $0.00002648 upon news of the listing. Accordingly, the memecoin surpassed resistance at $0.00002552. Bonk’s listing on a well-known exchange has heightened investor interest and improved market liquidity.
The Ethereum ETF Launch Effect
The rise in crypto prices in the broader market stems from the progression of the launch of an Ethereum Exchange-Traded Fund (ETF) in the United States. The recent market uptick is similar to investors’ sentiments that preceded the launch of eleven spot Bitcoin ETFs in January.
On-chain analytics firm Santiment attributes BONK’s outstanding performance to the anticipation surrounding the launch of the spot Ethereum ETF. The firm adds that this event contributed to one of crypto’s top five days of 2024. In accordance with Crypto News Flash’s prior coverage, Coinbase exchange estimates a 30-40% chance of approval by May 31.
However, it is worth noting that the SEC must approve both the 19b-4 filings and the S-1 registration statements for spot Ethereum ETFs to commence trading.
As of this writing, BONK is trading at $0.00003267, demonstrating a 5.6% increase in the past 24 hours, and up 35% in the last seven days.
Also, the 24-hour trading volume increased by 2.3% to $1.04 billion. Since May 13, BONK’s price has been rising at a steady pace after it hit a low of $0.0000214.
Overall, the memecoin market is demonstrating a bullish momentum with weekly trade volume increasing by over 200% year to date. The success of BONK ultimately rests on Solana’s popularity. The recent rally has had an encompassing rub-off with Solana up 0.37% to $180.07.
