Solana-based BONK has been all the craze since the start of the new year. The meme coin had risen from obscurity to the largest meme coin on the Solana ecosystem in less than two weeks, recording massive gains for investors during this time. However, the hype seems to have reached its peak and BONK has begun the dreaded downward correction.
BONK Falls 50% In 24 Hours
In the last day, the price of BONK has rapidly declined, losing more than 50% of its value during this time. It hit its all-time high price of $0.0000049 on Thursday when the hype was at its peak but since then, has fallen to $0.000002.
This was after recording a more than 4,000% return rate in a 10-day period and reaching a market cap of over $200 million. However, as is the case with meme coins, holding on to such gains becomes impossible with no real utility and eventually, the sell-offs dragged its price back down. Being a digital currency driven by purely social sentiment, this was expected to happen, just like it did with predecessors such as Dogecoin and Shiba Inu.
This drawdown in price has also seen the price surge recorded in Solana over the last week slow down significantly. However, while BONK is seeing over 53% losses in the past day, SOL recorded small gains of 0.17%.
Is It Time To Sell The Tokens?
With a downturn such as this, BONK could be seeing the start of the end just like Shiba Inu had done in October 2021. As such, it could be wise to get out of the cryptocurrency now if the losses were to continue for the next few days. But it is also important to take into account the growth of the meme coin, as well as the attention it is receiving in the market.
For example, BONK remains one of the most visited pages on Coinmarketcap. It is second only to RichQUACK, another meme coin that has not done well in the last week. What this shows is that there are still a lot of eyes on the cryptocurrency, which could give it a leg up.
Another important tidbit is that BONK transactions had reportedly surpassed that of Ethereum in the last three days, according to data from Dune Analytics. Now, this is only at the peak of the hype and does not mean that the meme coin would be able to sustain such levels but is important to note nonetheless.
However, it is essential to remember that when a digital asset falls 50%, it would need to see a 100% increase to get back to its previous price, which can be a hard feat to accomplish for a meme coin. In the end, investors should keep in mind that meme coins are more volatile than the average large-cap cryptocurrency.