Solana-based BONK has been a favorite since the start of the new year. The meme coin has risen from obscurity to become the largest meme coin in the Solana ecosystem in less than two weeks, recording huge gains for investors during this time. However, the hype seems to have reached its peak and BONK has started a terrible downward correction.
BONK Down 50% In 24 Hours
On the last day, the price of BONK has declined quickly, losing more than 50% of its value during this time. It reached an all-time high of $0.0000049 on Thursday when the hype was at its peak, but since then, it has dropped to $0.000002.
This is after recording a return rate of over 4,000% in a 10-day period and reaching a market cap of over $200 million. However, as with meme coins, holding onto these gains becomes impossible without real utility and eventually, the sale drags the price down. Being a digital currency driven by true social sentiment, this is expected to happen, as it did before such as Dogecoin and Shiba Inu.
This drop in prices has also seen the price increases recorded in Solana over the past week have dropped significantly. However, while BONK saw more than 53% losses in the past day, SOL recorded a small gain of 0.17%.
BONK falls over 50% in 24 hours | Source: BONKUSDT on TradingView.com
When Is It Time To Sell Tokens?
With a decline like this, BONK could see its last start like Shiba Inu did in October 2021. So, it might be wise to get out of the cryptocurrency now if the losses will continue for some time to come. day. But it is also important to take into account the growth of meme coins, as well as the attention they receive in the market.
For example, BONK remains one of the most visited pages on Coinmarketcap. It’s second only to RichQUACK, another meme coin that didn’t make it last week. What this shows is that there are still many eyes on cryptocurrency, which can give rise.
Another important tidbit is that BONK transactions have reportedly outperformed Ethereum over the past three days, according to data from Dune Analytics. Right now, this is just at the peak of the hype and it doesn’t mean that meme coins will be able to maintain that level but it’s important to note.
Transactions surpass Ethereum | Source: Twitter
However, it is important to remember that if a digital asset drops by 50%, it needs to increase by 100% to return to its previous price, which can be a difficult feat for a meme coin. Finally, investors should keep in mind that meme coins are more volatile than the average of the big cryptocurrencies.