Bonk token goes bonkers as traders chase after high yields in the Solana ecosystem

Bonk, a meme token imitated Shiba Inu (SHIB) that launched on Dec. 25, is skyrocketing and some traders believe the token’s trading volume is possibly driving Solana’s (SOL) price up. Over the past 48 hours, SOL price has actually gained 34%, and in the past 24 hours, Bonk has climbed 117%, according to information from CoinMarketCap. While the broader crypto market remains reduced, traders are hoping that Bonk might provide new opportunities throughout the decline.

According to the job’s website, Bonk is the very first pet dog token on the Solana blockchain. Initially, 50% of the token supply was airdropped to Solana users with a mission to eliminate hazardous Alameda-styled token economics. The airdrop resulted in more than $20 million in trading volume according to the Solana decentralized exchange Orca.

High yield returns

Liquidity companies (LPs) stand to take advantage of connecting with Bonk, and on Jan. 4, LPs are making over 999% APR, which is much greater than the popular SOL/USD Coin (USDC) pairing.

While high yields do not always remain high, the existing rates show big market demand for Bonk. In addition to the increase in need, Bonk also burned 1 billion of supply on Jan. 3.

WE BURNED 1 BILLION BONK TOTAL TODAY pic.twitter.com/XDHP2YzXzu!.?.!— degen poet(@degenpoet)January 4,

2023 Solana(SOL)bounces along with Bonk Blockchains like Solana benefit from increased usage. After the FTX collapse, Solana saw multiple tasks leaving the ecosystem. On

Jan. 4, Solana saw an 18.6%boost in 24-hour

costs and a 15.8 %increase in 24-hour everyday active users. Solana fees and daily active users. Source: TokenTerminal In addition to costs and day-to-day active user increases, SOL rate rallied above$14 on Jan. 4 for the very first timegiven that Dec. 14. Some crypto market participants are associating Bonk’s growth to Solana’s cost action. Solana is up 33 %in two

(@TheStalwart) January 3, 2023 While Bonk is merely a meme token, the increasing need is a positive indication for the Solana blockchain.

This is an indication that Vitalik Buterin might get his dream that Solana gets a”opportunity to flourish.”The views, thoughts and viewpoints expressed here are the authors’alone and do not always reflect or represent the views and opinions of Pandoraland.