Is BONK A Good Investment For 2024? Read CoinChapter.com on Google News
YEREVAN (CoinChapter.com) — The crypto market hype never ceases to amaze. Solana’s BONK token is the latest craze; it jumped 1,100% in the previous month. But what happened, why is the memecoin pumping and what does the surge have to do with Saga phones? And, most importantly, is BONK a good investment for 2024? First things first, let’s examine the price surge closely.
Solana’s BONK Price Rockets
The chart below demonstrates Bonk’s recent rally to its all-time high of $0.000028 in the Asian-Pacific session on Dec 15. Notably, the price was still rising as of 06:00 GMT, as investor greed did not wane after the surge.
BONK token price. Source: TradingView
On-chain tracker Messari also indicated that BONK trading volumes jumped to their peak on Dec 15, reaching $454 million. While trading volumes alone don’t indicate a bias, combined with the surging price they underscore high interest in the token, and suggest the rally could continue longer.
BONK Trading Volumes. Source: Messari
Moreover, Solana (SOL) was a red-hot blockchain for institutional investors in Q4. According to the latest CoinShares report published on Dec 11, the platform inflows stood at $3.1 million in the week ending Dec 10, which confirms bullish expectations.
Notably, Solana surpassed competitors, such as Avalanche (AVAX), Cardano (ADA), and XRP, flipping Ethereum (ETH) by a long shot in year-to-date inflows at $146 million.
Solana inflows. Source: CoinShares
Now, without further ado, let’s see WHY BONK surged over 1,100%.
BONK and Saga Phone — What Happened?
One of the notable events related to the BONK price surge is its association with the sales of the Solana Saga smartphone. The surge in interest and sales of the Solana phone was influenced, at least in part, by an airdrop of BONK tokens.
The Solana Saga phone, initially struggled with sales. What to do? Airdrop of BONK tokens to every owner of the Saga phone, of course! Specifically, the airdrop consisted of 30 million BONK tokens, creating a unique arbitrage opportunity. Also, users could claim this airdrop by downloading the BONK app from Saga’s custom app store, without a specific end date for the airdrop.
Solana co-founder Raj Gokal’s tweet on Saga and BONK
But here’s the catch. At the time of the Saga phone’s announcement in April, it was priced at $1,000 and came with an airdrop incentive of $10 worth of BONK tokens. The initial value of BONK at this point was approximately $0.0000004 per token.
Is BONK a Good Investment For 2024?
However, as the BONK price soared to the mentioned $0.000028, the phone price was out of the picture, creating a frenzy among buyers and traders. Who doesn’t want a free phone to go with their free BONK Airdrop? Now, let’s get to the point. Is BONK a good investment for 2024?
BONK is a memecoin, which means it feeds off hype and controversy. Should you buy Bonk coin now? According to the trading volumes, the commotion around the token could go on a bit longer.
However, the rally is unlikely to be long-lived. Thus, BONK is not the type of coin to consider a long-term investment. However, if more traders plan to get their piece of the pie, the price pump might go on to the end of the week.
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