Blockchain News

Solana Memecoin $BONK Burns 5 Trillion Tokens as Prices Plunge

The team behind the meme-inspired cryptocurrency $BONK, which was just created on top of the Solana ($SOL) network, has burned a total of 5 trillion tokens that were granted to them, at a time when the digital asset’s valuation is falling.

In a post to the project’s almost 100,000 Twitter followers, the team stated that $BONK “represents the best of Solana,” and that the community is “working together across the ecosystem to accomplish positive change for all of us.”

The team then tweeted a link to the transaction in which the 5 trillion $BONK tokens were burned. The token burn occurred after the cryptocurrency’s price began to fall after soaring by about 2,000% shortly after its debut.

The cryptocurrency community reacted favourably to the action, demonstrating that the company behind the meme-inspired cryptocurrency isn’t dumping tokens on the market and instead chose to burn them by sending them to an address that no one controls.

Notably, according to CryptoCompare’s latest Asset Report, the 7-day average active addresses on the Solana ($SOL) ecosystem have increased from 378.2 million at the end of last year to 490.5 million as of January 7, showing a 29.7% rise in such a short period of time.

The surge can be ascribed in part to the airdrop of $BONK to Solana NFT holders, effectively targeting the most active members of the network, as well as backing from Ethereum co-founder Vitalik Buterin.

Raoul Pal, a former Goldman Sachs executive, is reportedly positive on Solana. Solana is “creating a consumer chain,” according to Pal, and has agreements with Meta, Google, Discord, and others, as well as a store in Manhattan selling Solana items.

He believes that the use of NFTs and other digital assets will skyrocket in the coming years, that Solana reminds him of Ethereum in 2018, when it was down 97% and no one noticed.

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