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Bonk Overtakes PEPE in Memecoin Market: What is Behind the Surge?

Last Updated December 11, 2023 3:24 PM
James Morales
Last Updated December 11, 2023 3:24 PM

 

Key Takeaways

  • Bonk has amassed a market capitalization of over $700M, surpassing that of rival memecoin PEPE.
  • A surge of interest in Solana has helped fuel Bonk’s recent rally.
  • The meme token is supported by a community of Web3 users.

Having surged by around 400% in the past 30 days, Bonk has emerged as the breakout memecoin of late 2023. In the last week alone, the token’s market capitalization has more than doubled to over $700M, leapfrogging rival PEPE to become the hottest meme on the market. 

As it approaches its first birthday on December 25, festive cheer and community chatter appear to be fuelling demand for the Solana-based token. But is that all there is to it?

Rising Interest in Solana Fuels Bonk Memecoin Rally

The latest round of memecoin mania has arrived at a time when the Solana blockchain and SOL token are on the ascendancy.

With the number of daily active Solana addresses rising since the end of November, the network’s daily user count has now surpassed rivals Polygon (MATIC) and Ethereum (ETH). Meanwhile, on December 9, the total value locked (TVL) on Solana eclipsed Polygon and Avalanche (AVAX) for the first time since 2021.

sol vs aptos vs polygon TVL
Total value locked on Avalanche (red), Polygon (purple) and Solana (green).

In a related development, Solana’s network token SOL has been on an impressive bull run since mid-October, climbing from around $20 to a yearly high of $75 on December 9. Throughout 2023, the cryptocurrency has significantly outperformed other major alt coins, leaving rivals like Polygon MATIC and BNB in the dust.

Finally, taking its cue from the Shiba Inu (SHIB) playbook, the wider Bonk ecosystem has grown to include Decentralized Finance (DeFi) integrations, NFT projects and community engagement schemes spanning various Solana-based platforms. In contrast with PEPE and other meme coins, this means Bonk has a use case beyond speculative token trading. For example, it can be used to buy Solana NFTs on exchange.art  or to bet on the SOL/USD market via Bonk or Bust .

Christmas Comes Early for Bonk Investors

The combination of Solana’s rising network activity and SOL’s recent price gains created the conditions for Bonk to explode when KuCoin listed the BONK-USDT trading pair on December 2. 

Moreover, in anticipation of the meme token’s first anniversary, Bonk-holders are also gearing up for a festive Airdrop campaign dubbed “the 12 days of Bonkmas,” 

Initially conceived as a way to revive the downtrodden Solana ecosystem after a difficult 2022, Bonk tokens have been deployed across various Solana projects since the coin’s launch. The planned Christmas rewards program will therefore be used to reward early investors and showcase different initiatives that have emerged from the platform in the past year.

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