Bonk token goes bonkers as traders chase after high yields in the Solana ecosystem

Bonk, a meme token modeled aft Shiba Inu (SHIB) that launched connected Dec. 25, 2022, and immoderate traders judge the token’s trading measurement is perchance driving Solana (SOL) terms up. Over the past 48-hours, SOL terms has gained to 34% and Bonk is up 117% successful the past 24-hours according to information from CoinMarketCap. While the wider crypto marketplace remains suppressed, traders are hoping that Bonk could contiguous new opportunities during the downturn. 

According to the project’s website, Bonk is the archetypal canine token connected the Solana blockchain. Initially, 50% of the token proviso was airdropped to Solana users with a ngo to region toxic Alameda-styled token economics. The airdrop resulted successful much than $20 cardinal successful trading measurement according to the Solana decentralized exchange, Orca.

High output returns

Liquidity providers (LPs) basal to payment from interacting with Bonk, and connected Jan. 4, LPs are earning implicit 999% APR, which is overmuch higher than the fashionable SOL / USD Coin (USDC) pairing.

Liquidity supplier returns connected Orca. Source: Orca

While precocious yields bash not ever support specified a precocious level, the existent rates amusement a ample marketplace request for Bonk. In summation to the summation successful demand, Bonk besides burned 1 cardinal of proviso connected Jan. 3.

WE BURNED 1 BILLION BONK TOTAL TODAY pic.twitter.com/XDHP2YzXzu

Solana (SOL) bounces alongside Bonk

Blockchains similar Solana payment from accrued usage. After the FTX collapse, Solana saw aggregate projects leaving the ecosystem. On Jan. 4, Solana saw an 18.6% summation successful 24-hour fees and a 15.8% summation successful 24-hour regular progressive users.

Solana fees and regular progressive users. Source: TokenTerminal

In summation to fees and regular progressive idiosyncratic increases, SOL terms rallied supra $14 connected Jan. 4 for the archetypal clip since Dec. 14. Some crypto marketplace participants are attributing Bonk’s maturation to Solana’s terms action.

Solana is up 33% successful 2 days arsenic recently launched canine coin BONK gains assemblage hype pic.twitter.com/XusvGHg24X

While Bonk is simply a meme token, the expanding request is simply a affirmative motion for the Solana blockchain. This is simply a motion that Vitalik Buterin may get his privation that Solana gets a “chance to thrive.”

The views, thoughts and opinions expressed present are the authors’ unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.