YEREVAN (CoinChapter.com) — The crypto market hype never ceases to amaze. Solana’s BONK token was the latest craze, jumping 1,100% in December. But what happened when the hype died down? And, most importantly, will BONK Memecoin price fall to zero in 2024?
BONK Memecoin Price Follows the Hype
For newbie cryptocurrency enthusiasts out there, if you chose Memecoins as a way to become a crypto millionaire, think again. Sure, some people made their fortune by betting on the right memecoin AT THE RIGHT TIME. However, there are no legions of ‘lucky bastards,’ just a few sleep-deprived traders.
Now, the BONK memecoin price is no exception. Will it fall to zero in 2024? It depends on the hype level and investors’ willingness to park their hard-earned cash with a questionable coin. Let’s take a look at the statistics.
BONK On-chain Metrics Favor the Bears
According to on-chain tracker Messari, BONK’s trading volumes peaked on Dec 15 at nearly $800 million and have fallen since, settling around $44 million on Jan 4. While trading volumes alone don’t indicate a bias, combined with the dropping price, they underscore the low interest in the token.
Moreover, low trading volumes and dropping prices suggest that market manipulation by a few persistent bears might be in session. The latter would not be surprising, as memecoins are highly prone to market manipulation and carry greater risks.
Another on-chain tracker, Santiment, backed the results, drawing a parallel between the price action and the daily trading volumes.
Another important aspect of any memecoin is social engagement. The latter could help objectively quantify investor interest and help figure out the upcoming price fluctuations. So, will the BONK memecoin price drop to zero? It could if its social engagement remains at current lows. According to Santiment, its on-chain metric’s peak coincided with the price surge.
Many other memecoins, for example, the frog-themed PEPE coin, drew a similar pattern. The coin’s trading volumes and price pumped in May 2023, then consistently declined through Q3-Q4.
The memecoin’s price has not dropped to zero. However, it is most likely past the point of bringing high returns.
Memecoin’s Fundamentals Won’t Help
Ok, an important correction – “memecoin fundamentals” are an oxymoron. Memecoins don’t have strong fundamentals. Not part of the default options.
Moreover, the only notable event related to the BONK price surge is its association with the sales of the Solana Saga smartphone. The surge in interest and sales of the Solana phone was influenced, at least in part, by an airdrop of BONK tokens.
The Solana Saga phone initially struggled with sales. What to do? Airdrop of BONK tokens to every owner of the Saga phone, of course! Specifically, the airdrop comprised 30 million BONK tokens, creating a unique arbitrage opportunity. Also, users could claim this airdrop by downloading the BONK app from Saga’s custom app store without a specific end date for the airdrop.
The Saga phone sale is now history. So it seems the BONK memecoin price could drop to zero in 2024 if enough investors decide they have no interest in the coin anymore.
