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BONK News Today: Token Burn Proposal Boosts Memecoin by 23%
- On-chain data showed the community’s bullish sentiment towards BONK following the news
- The price may consolidate for some time, however any approval could push BONK higher.
By Bonk [BONK] The price jumped from $0.000021 to $0.0000026 in less than 24 hours between June 8 and 9. This happened after news that Bonk DAO planned to burn another set of tokens.
DAO stands for Decentralized Autonomous Organization. On the 8th, it announced that it had received a proposal to burn 84 billion tokens.
Token burn occurs when a project intentionally removes a certain number of tokens from circulation.
This process typically involves sending tokens to public wallets, where they cannot be retrieved or accessed. However, this was not the first time BONK burned tokens.
The key to higher prices?
In April, the team behind the meme coin burned 278 billion tokens after achieving a 99.99% exchange rate approval from his community.
After that, the price of the cryptocurrency went from $0.000014 to $0.000041 in less than six weeks.
Although this time the community has not yet approved, as they would have had six days to vote on the proposal. DAO’s statement read That,
“BONK DAO proposes a BURN of 83,917,950,070 BONK from its Treasury, which represents 100% of the BONK earned by BONK DAO from its revenue sharing agreement with BONKBot in Q2.”
If given the green light, the price of memecoin could mirror its previous performance. If so, the value could revisit its all-time high.
Following the development, the feeling weighed pointedWeighted Sentiment shows whether online comments about a project are on average positive or negative.
If the reading is positive, it means that the broader sentiment is bullish. But a negative assessment implies that market participants are not convinced of good price action in the short term.
Source: Santiment
BONK slows down, but it’s not the end
At press time, the sentiment reading was 0.836, in line with the first interpretation. If this continues, demand for the cryptocurrency could increase. Eventually, it could even lead to a further increase in prices.
However, in terms of volatility, AMBCrypto noted that it has dropped. Volatility shows how quickly the price can rise or fall. If it is high, the metric can cause the price to jump in a short period, as long as there is buying pressure.
Furthermore, if the selling pressure is intense with high volatility, prices can drop very quickly. For BONK, low volatility implies that the price could hold move sideways until an escape occurs.
Volume also gave a similar signal. Initially, BONK volume rose to $580.18 million. But at press time, it had dropped to $350.41 million, meaning that interest in the memecoin was waning.
Source: Santiment
Realistic or not, here it is BONK Market Cap in DOGE Terms
Considering the decreasing volume and rising prices, the uptrend may weaken temporarily.
However, if the Bonk community gives the green light to the DAO after the voting process, the price could replicate the move made in April.