Why BONK Keeps Surging

Memecoin season has returned; here are the narratives driving BONK.
Mar 4, 20243 min read

Now, it should be obvious but memecoin gains don't always have a rhyme or reason. That being said, BONK's recent pump has a lot going for it narrative-wise.

Bonk, the Solana-based memecoin sensation, has surged more than 47% today, up nearly 200% over the past week as the broader market rallies with BTC on the verge of its all-time high. In this rally, BONK has surpassed SUI, SEI, and TIA in overall market cap and currently sits at $2.5B.

As memecoin season kicks into high gear, BONK, the darling of last fall, stands at the front of the pack alongside other dog coins like SHIB and DOGE which are also widely available on centralized exchanges – and are also seeing double-digit upticks in the past 24 hours. WIF, Solana’s newest doggy coin du jour, has seen a dip of about 15% over the past 24 hours, cooling off after its ~400% rally the last week.

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Investors are placing their bets on where retails dollars go if Bitcoin all-time highs bring in a tidal wave of FOMO dollars. Memecoins are always a promising bet, but newer coins with less 2021 bull run baggage might be even better.

Solana has been gaining steam in its designation as the memecoin chain due to low fees, a factor which is likely also helping boost BONK.

BONK's positioning teamed with currently being easier to buy than competing tokens like WIF which are not listed on major exchanges will likely give BONK added steam. Additionally, the individual price of any 1 BONK token being a fraction of a cent may play a part thanks to Unit Bias — a phenomemon where people tend to buy tokens they can buy more of rather than based on overall market cap.

Overall, the current frenzy around meme coins, coupled with Solana's reputation as the home for such assets, positions BONK well. Memecoin seasons are a tough time to look for any ironclad "fundamentals" and luck is often more than half the battle, but with more investors prepping for continued bull cycle action and forecasting the return of retail, there are a reasons to get bullish.

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Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

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