The developers behind Solana-based memecoin BONK burned their allocation of 5 trillion BONK tokens early Friday in a bid to stem the token’s bearish momentum.
After the token burn event, which saw nearly $1 million worth of BONK taken out of circulation, BONK’s circulating supply shrank 5% to 94.16 trillion, according to data from Solana block explorer Solscan .
A token burn is a standard process to reduce the supply of a cryptocurrency, which, the theory goes, can lead to an increase in the asset’s prices.
But BONK reacted differently.
The BONK price decline continues
At the time of the token burn, each BONK token was changing hands for around $0.00000244, according to data from CoinGecko. Since then, the token has lost around 12% in value and is trading at $0.00000192 as of this writing.
In the last 24 hours, BONK has lost almost 50% of its value, despite the development team’s token burn.
However, this pales in comparison to the meme coin’s weekly performance, which has seen BONK up 2,015%. BONK’s performance also lifted Solana, which is up about 35% over the week (although it’s down about 2% over the past 24 hours).
Heavy user activity
Despite its short-term negative price action, BONK has seen strong growth in user activity over the past week.
According to data from Dune Analytics, BONK has seen over 4 million transactions in the last three days, a number that is slightly higher than the total number of transactions processed by the Ethereum blockchain over the same period.
The token has also seen an increase in its daily active users (DAU) over the past week. Almost 15,000 users have interacted with the token over the past three days.
Daily active users is a measure to track user activity associated with a DApp or cryptocurrency. The higher the value, the more interest in the token there is on the market.
Chart showing the daily growth of active users of BONK. Source: Dune Analytics.
As of this writing, more than 103,759 wallet addresses hold BONK tokens, a number that is up 99.9% since December 25, 2022, according to data from Solscan.
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