Solana, one of the biggest proof-of-stake cryptocurrencies, has been going bananas, gaining over 40% in the last week on the strength of BONK, a dog-themed token that launched on the Solana ecosystem in the past week.
BONK is a Shiba Inu-inspired meme coin that was released on December 25 and contains a dog avatar. BONK is characterised as the “first Solana dog coin created by and for the people.” According to a statement on the token’s website, 50% of the token supply was airdropped to the Solana community as a kind of compensation after the collapse of FTX and Alameda.
The message added, “The Bonk community was weary of poisonous “Alameda” tokenomics and wanted to create a fun meme currency where everyone has an equal chance.”
According to statistics from CoinMarketCap, the price of BONK has increased by 42.90 percent in the last day. This expansion has also persuaded some Solana traders that the token’s trading volume is influencing the price of Solana, prompting them to purchase BONK.
Solana’s recovery comes after the cryptocurrency hit a low of $8.30 on December 29 as a result of the loss tsunami caused by the collapse of FTX and Alameda Research.
Sam Bankman-vocal Fried’s support for Solana and Alameda’s considerable holdings of SOL on its balance sheet, as published by ZyCrypto, cast a negative light on the cryptocurrency, resulting in a major retail drop. Between November 7 and December 29, 2022, SOL lost about 77% of its value, for a total loss of around 96%.
Solana also saw a major migration of projects developed on the network, with Non-fungible token (NFT) company Dust Labs announcing intentions to bridge off two of its top-performing Solana NFT projects, DeGods and y00ts, onto Ethereum and Polygon.
With the dust settling on the FTX scandal after Sam Bankman-arrest, Fried’s Solana community seems to be reuniting in the hopes of restoring Solana’s former grandeur. In the last three weeks, there has been an increase in requests for the community to concentrate on the ecosystem’s growth and development rather than sideshows.
The week before, Vitalik Buterin, co-founder of Ethereum, endorsed Solana, stating that “the chain has a bright future” after the recent sell-off purged “the horrible opportunistic money people.” He said that he hoped the Solana community will be given an opportunity to flourish. SOL was trading at $13.19 following a daily decline of 1.22%.
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