BonkDAO has announced the destruction of 1.69 trillion BONK tokens valued at approximately $54.52 million. This is part of their community initiative, “BURNmas,” aimed at reducing its supply from 100 trillion to 91 trillion to enhance scarcity.
History of the BURNmas initiative
On November 15, 2024, BURNmas commenced as a strategic move to increase the value of $BONK by reducing its circulating supply. While the initial goal was to burn 1 trillion BONK tokens by Christmas, community enthusiasm and participation have led to a larger outcome.
The initiative encourages community participation through social media interactions. This included tweeting with the hashtag #LetsBonk, following official accounts, and engaging in activities on platforms like BONKbets.
Each action contributed to the total amount of tokens earmarked for burning, emphasizing a unique blend of community involvement and gamification.
Previous burns, for example, occurred in November 2024, when approximately $4 million worth of BONK tokens was removed from circulation. This partly contributed to the increase in the market cap from $2.3 billion to over $4 billion within a week.
This was due to investor interest and a sense of FOMO (Fear Of Missing Out), as BONK became the most sought-after memecoin on the Solana blockchain at that time. This increase shows how effective token burns can be in creating scarcity and driving demand.
Market implications from the BONK burn
So far, despite an initial positive response, $BONK experienced fluctuations. It ended up trading lower than expected shortly after the burn, with reports indicating a loss of over 6% in value.
On the brighter side, it also showed a slight increase of close to 6% over the previous 24 hours.
Additionally, it’s important to note that BONK remains up approximately 90% over the past year. This indicates its resilience performance over the long term.
Price action and technical analysis
BONK/USD (Source: TradingView)
BONK is currently trading at $0.00003098 at a market cap of $2.3 billion. The current RSI of 54.06 indicates a slight bullish momentum, though it is not yet overbought. If buying pressure increases closer to 70, it could indicate a potential price uptrend.
An increase in buying activity could drive RSI towards overbought territory, indicating a possible correction or profit-taking phase soon.
The MACD line is above the signal line, which also shows bullish momentum. If there is a crossover above zero, it could indicate increasing buying pressure from traders.
This signal may encourage traders to consider entering positions or increasing their holdings. This is the anticipation of further price appreciation following the burn.
Traders should expect increased volatility from reactions to both BONK news and technical signals. If trading volumes increase alongside price increases, it could mean a bullish trend. While low volume may indicate a lack of conviction.
Based on historical patterns from previous burns, traders may want to set profit targets based on previous performance metrics while remaining vigilant about broader market developments.
Read more: Dogecoin Price Slips as DOGE ETF Odds Fall on Polymarket
