Hello everyone, I'm Penny.
Bonk.fun recently surpassed the Solana chain meme launch platform Pump.fun with a market share of 55.2%, generating an astonishing $540 million in revenue and charging about $34 million in fees, which has significantly intensified the price rise of BONK.
Bonk.fun's bold strategy opens new markets.
The core of Bonk.fun's success lies in its unique fee distribution strategy. Half of the revenue is used to buy and burn BONK coins, and 8% is accumulated as reserves. The community refers to this as the 'automatic burn program,' and these transactions are transparent and traceable on the blockchain.
Currently, Bonk.fun's daily revenue exceeds $1 million, with nearly $500,000 worth of BONK permanently removed every 24 hours.
In addition to the buyback plan, Bonk.fun also attracts users with its lightning-fast transaction confirmation speed. As of January 2024, Pump.fun has accumulated $800 million in fees over two years, whereas Bonk.fun has reversed this situation in just two months. This rapid transformation highlights its incentive-driven model, projecting that the current burn rate is equivalent to hundreds of millions in purchases annually.
The platform leader predicts that if the current daily revenue continues to grow, by the end of the year, the buyback amount for BONK could exceed $180 million. If this happens, about 7% of the total supply of this altcoin at the beginning of the year will be burned, leading to a reduction in supply. This decline could enhance BONK's status as a payment currency on Solana.
Nevertheless, Pump.fun still maintains strong momentum, capturing a 34.9% market share with a trading volume of $341 million. Meanwhile, as the market balance within the Solana ecosystem rapidly shifts, Believe, Jup Studio, and Moonshot hold 3.8%, 2.1%, and 1.7% market shares, respectively. Experts predict that ongoing competition for market share may have a lasting impact on meme-themed token issuance in the coming quarters.
USELESS Coin's trading volume has surpassed $100 million.
Despite its ironically named nature, the USELESS coin launched on Bonk.fun has quickly surpassed a market capitalization of $100 million, effectively enhancing Bonk.fun's liquidity appeal. Reportedly, during peak liquidity times, the USELESS coin can generate millions in trading volume within minutes.
The next target price for BONK is $0.000040.
Influenced by Bonk.fun, the price of BONK recently broke out of a downward channel that lasted for several months. Since breaking out on July 2, it has shown a strong upward trend with daily candlesticks in the green. The memecoin reached a high of $0.000024 during today's trading session and is currently testing an important resistance area that aligns with a local high from early May. Since breaking the downward trend line around $0.000015, BONK has risen over 60%.
This recent rise seems to be driven by positive news regarding token burns and ecosystem growth. Last week, the Bonk team announced that once the number of project holders reaches one million, they will burn one trillion BONK tokens. According to current data, the number of token holders is 950,300, and this goal may be achieved soon.
Additionally, the Bonk Foundation's token launch platform LetsBONK.fun was released on April 25, and its daily revenue has recently surpassed that of Pump.fun. This is good news for BONK holders, as 50% of the platform's revenue is used for the buyback and burn of BONK, further enhancing its deflationary momentum.
More optimistically, it has recently been confirmed that July 16 is the earliest possible launch date for its upcoming series of leveraged crypto ETFs (including the 2× BONK ETF).
The price of BONK is now approaching a key decision point: successfully closing above the $0.000024 to $0.000025 area could validate a larger bullish continuation pattern - possibly breaking out from a cup and handle formation - with an upward target close to $0.000040 based on the depth of the pattern.
However, with the RSI hovering above 75, BONK has currently entered the overbought zone, suggesting that there may be short-term consolidation or a pullback before the next rise. If the price retraces, the area around $0.000018 may hold as support during the pullback, as this area was previously tested as a resistance level before eventually breaking through.
I am Penny, a long-term coin holder enthusiast. I don't engage in contracts or leverage. I earn coins in bear markets and earn USDT in bull markets. If you are the same, then welcome to follow me, Penny.
Let's navigate through the bull and bear markets together, huddling for warmth, and strive to be a rougher type of retail investor.
