Since November 7, the Solana blockchain had been under a tremendous amount of pressure due to the FTX crash. The network had attempted to recover from the downtrend but things did not work out well.
It struggled throughout the month of December as well and things were not looking promising for the asset.
Bonk Token is Helping Solana Network
The Solana blockchain investors and users were not happy with the entire situation at all. Many projects running on the network have already announced that they will be leaving it in the first quarter of 2023.
However, things have started to look a bit different as the year 2022 came to a close. This happened because a meme token, Bonk was launched through the Solana network.
The sources claim that the meme token has been launched after the second-largest meme coin, Shiba Inu (SHIB).
With the launch of the Bonk token on December 25, things have started moving in a positive direction for the Solana network.
The new meme coin has been witnessing a great adoption rate that has caused its trading price to skyrocket.
The token has become the center of attention for the entire cryptocurrency and the meme coin community. They are spending a lot of money to push and pump the trading price of the asset.
Price Surge of SOL and Bonk Tokens
Many are now believing that it is due to the Bonk token that the adoption level for the Solana blockchain has surged tremendously.
As a result, the trading price of the SOL token has experienced a surge. The report shows that the trading price of SOL has recorded a 34% surge in the past 48 hours.
Even the trading volume for the SOL token has recorded a significant push since the beginning of 2023. On the other hand, the trading price of the Bonk token has recorded a really high rally.
The report shows that in the past 24-hours, the value of the new meme token has been pushed up by 117%. The information has been shared by CoinMarketCap, a major crypto data tracking firm.
While the SOL and the Bonk tokens have recorded have witnessed huge gains, the wider crypto market has remained in the mid-level trading territory.
They have not witnessed many surges and pumps since the beginning of January. However, the overall market situation still seems to be optimistic.
First Dog Token on the Solana Network
It is worth mentioning that the Bonk token is the first-ever dog token that has been launched through the Solana blockchain.
Prior to launching the token through the public market, the developers of the bonk token had held an airdrop. This is where 50% of the total supply of the bonk tokens was distributed.
Only the users on the Solana blockchain were able to participate in the airdrop. The teams behind the Bonk token had announced that they wanted to remove the hatred the investors had for the Solana network.
The people had become very toxic against the Solana network after the Alameda Research and FTX crashes. Therefore, it was important to make sure that the investors looked at the positive side of the network.
As a result of the airdrop, the trading volume of the Bonk token surged tremendously. CoinMarketCap showed that the trading volume had surged over $20 million on the Solana network.
High Yield Returns
The investors acting as the liquidity providers have started to invest money into the Bonk token. The report shows that since January 4, the APR of the liquidity providers for the Bonk tokens has surged over 999%.
The APR that the LPs have earned from the Bonk token is much higher than the APR earned from investing in the SOL token.
Although Bonk has been performing well, many investors think it will end up losing its influence in the crypto market. Still, Bonk developers have been taking the right steps to ensure things keep going in their favor.
For this purpose, they have burned over 1 billion bonk tokens to ensure its demand remains high and the token keeps surging.