Why does BONK continue to soar?

Now, this should be obvious, but there isn’t always a pattern or reason to Memecoin’s growth. That being said, BONK’s recent craze has a lot going for it in terms of narrative.

Solana’s memecoin Bonk has surged more than 47% today and is up nearly 200% over the past week as the broader market rebounds and Bitcoin nears all-time highs. During this rally, Bonk’s total market cap has surpassed SUI, SEI, and TIA and now stands at $2.5 billion.

As Memecoin season gets underway, last fall’s darling BONK is at the forefront along with other dogecoins like SHIB and DOGE, which are also widely available on centralized exchanges and have also seen double-digit price gains over the past 24 hours. Solana’s newest dogecoin, WIF, has fallen by about 15% over the past 24 hours, cooling off after rising by about 400% last week.

If Bitcoin hits a new all-time high, sparking a wave of “FOMO” dollars, investors will bet on where the retail dollar will go. Memecoin is always a promising option, but newer tokens with less baggage may be better.

Solana has been designated as the Memecoin chain due to its low fees, a factor that may also help drive BONK’s growth.

BONK’s positioning coupled with the fact that it is currently easier to buy than tokens like WIF that are not listed on major exchanges may give BONK more momentum. In addition, the price of any 1 BONK token is only a fraction of a cent, which may be due to the effect of unit bias - people tend to buy tokens that they can buy more of, rather than based on the overall market value.

Overall, the current frenzy around Memecoin, combined with Solana’s reputation, puts BONK in a good position. Memecoin season is a tough time to find any “fundamentals” and luck is often more than half the battle, but as more and more investors prepare for continued bull cycle action and predict returns for retail investors, there are reasons to be bullish.