Solana: Why this meme coin could be the reason for SOL’s short-lived rally

1 year ago 95
  • Since the motorboat of meme coin BONK, Solana’s terms has jumped significantly
  • However, the terms mightiness rebound arsenic the hype astir the meme coin dropped

The motorboat of the Shiba Inu [SHIB] – themed token, Bonk [BONK] and its determination to behaviour an airdrop benefitted Solana. SOL ranked arsenic the best-performing cryptocurrency plus successful the past 24 hours, information from CoinMarketCap revealed.

Read Solana’s [SOL] Price Prediction 2023-2024

According to information from the cryptocurrency terms tracking platform, SOL’s terms rallied by 16% successful the past 24 hours and 33% successful the past week to speech hands astatine $13.60 astatine property time. 

The terms leap during the intraday trading league connected 3 January represented a betterment from a nine-day streak of terms decline. A week ago, SOL traded astatine $8. 

SOL closed the 2022 trading twelvemonth with a superior diminution successful its worth owed to Solana’s transportation to Sam Bankman-Fried, who, astatine the clip of writing, was facing allegations of fraud and misappropriation of lawsuit funds.

Source: CoinMarketCap

Inu coins: A communicative of failure

Described connected its website arsenic the “first Solana Dog Coin for the people, by the people,” BONK was launched connected 25 December erstwhile it conducted an AirDrop of 50% of its full supply. 

Following the AirDrop, the fig of BONK holders rallied significantly. By 3 January, the fig had exceeded 85,000. Its marketplace capitalization climbed gradually to highest astatine $79 cardinal astatine property time.

Per information from Dune Analytics, implicit 500 transactions person been conducted utilizing BONK tokens since its motorboat connected Christmas day. The maturation successful the number of BONK holders successful the past week owed to the AirDrop besides drove immoderate postulation to the Solana network. 

In the days since the $BONK motorboat (~December 25th) Solana has added implicit 20,000 regular progressive wallets.

Probably something.

— Bonk! (@bonk_inu) December 31, 2022

Although BONK has had important occurrence since its launch, its presumption arsenic a meme coin, modeled aft akin coins similar Shiba Inu, Dogecoin, and Floki, raised respective concerns. Most of these concerns were whether its terms would yet diminution successful the aforesaid mode arsenic these older meme coins.

What volition Solana execute with meme coins?

As per its one-pager, BONK was launched because,

“The Bonk contributors were bushed of toxic “Alameda” tokenomics and wanted to marque a amusive meme coin wherever everyone gets a just shot.” 

While BONK secured partnerships with a fewer Solana projects to beryllium adopted arsenic outgo for listed non-fungible tokens (NFTs), determination are nary different clear-cut details connected task tokenomics, prospective merchandise launches, oregon immoderate different signifier of real-life utility. 

How many SOLs tin you get for $1?

Meme coins are often taxable to a impermanent summation successful value, followed by a sustained diminution implicit an extended period. Often, their worth is based connected their perceived popularity oregon novelty, which tin beryllium fleeting. If the coin’s popularity wanes, its worth whitethorn decline. 

Additionally, meme coins whitethorn beryllium much susceptible to terms manipulation oregon pump-and-dump schemes. Thus, this could pb to volatile terms swings and undermine assurance successful the coin. 

Finally, these coins often deficiency a beardown underlying exertion oregon usage case, making it much hard to execute semipermanent success.

Abiodun is simply a full-time writer moving with AMBCrypto. He is besides a lawyer with implicit 2 years of experience. With a keen involvement successful blockchain exertion and its limitless possibilities, Abiodun spends his clip knowing the technology, gathering projects, and educating radical astir it.

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