BONK, the Solana-based memecoin, has experienced a notable price recovery following a community-driven token burn event called "BURNmas." The burn removed 1.69 trillion BONK tokens from circulation, reducing supply and boosting market value.
Key Highlights of the BONK Token Burn
1.69 Trillion BONK Tokens Permanently Removed
The BONK Decentralized Autonomous Organization (DAO) executed the burn via its multi-signature wallet on December 26, 2024. This event surpassed initial community expectations, eliminating approximately $52 million worth of tokens (1.85% of circulating supply).
Revised Burn Proposal
Originally planned for December 25, the DAO delayed the event to increase the burn volume from 1 trillion to 1.69 trillion tokens based on member votes. This strategic move aligns with BONK’s broader tokenomics goals to enhance scarcity and price stability.
Community Reaction:
"The BONK community exceeded The Dog's (and the DAO's) expectations and REALLY showed up!"
— BONK DAO (@bonk_inu)
Market Impact and Price Recovery
- 24-Hour Gain: BONK surged 8.5% from its low of $0.00003004 to $0.00003269.
- Weekly Performance: Up 29.6%, outpacing competitors like Dogecoin (DOGE, +11.4%) and Shiba Inu (SHIB, +12.8%).
- Resistance Level: The token now tests a critical threshold at $0.000034, a level it has attempted twice this week.
👉 Why token burns matter for crypto valuations
Broader Context
The crypto market has faced declines due to holiday-induced low trading volumes and Bitcoin’s struggle to reclaim $100K. However, BONK’s burn-driven recovery highlights the effectiveness of supply reduction mechanisms in memecoins.
FAQs About BONK’s Token Burn
Q1: How does burning tokens affect BONK’s price?
A: Burns reduce circulating supply, increasing scarcity and potential demand, which can drive prices upward.
Q2: What percentage of BONK’s total supply was burned?
A: 1.69 trillion tokens (1.85% of the ~90.97 trillion in circulation).
Q3: Why was the burn event delayed?
A: To accommodate a DAO vote expanding the burn volume from 1 trillion to 1.69 trillion tokens.
Q4: Is BONK’s price recovery sustainable?
A: Market sentiment and broader crypto trends will play key roles, but reduced supply supports long-term valuation efforts.
For more insights on crypto market dynamics, explore:
👉 How memecoins leverage community engagement
Disclaimer: This content is for informational purposes only and does not constitute financial advice. Cryptocurrency trading involves risks.