by BONK Token’s Steady Adoption in Solana Leads to High Returns for Investors
In recent crypto market news, a Shiba Inu-themed token called Bonk has been generating significant returns for traders and liquidity providers in the Solana ecosystem. Despite the current flat market and contagion risks in the crypto industry, traders are always on the lookout for the next big narrative to generate returns, and Bonk is at the center of that.
The token, which was issued on December 25th, has seen a staggering 2,220% return for traders in the past week, with a 150% increase in the past 24 hours alone. .
Early investors in Bonk are not the only ones seeing gains from the token. Liquidity pools on Solana decentralized exchanges (DEXs) such as Orca have attracted over $20 million in volume for trading pairs involving BONK, cumulatively netting thousands of dollars in fees for liquidity providers. These liquidity providers are investors who stake their cryptocurrency tokens on DEXs to earn transaction fees, usually in the form of token rewards.
Data from Orca shows that the BONK/SOL pair has conducted over $14 million in trading volume, while the BONK/USD coin pair saw over $6.2 million. Both pools are paying out nearly 1% hourly to liquidity providers, or over 24% per day. These metrics have made Bonk the most traded token on Orca, a popular
Solana DEX, with trading volumes higher than even Solana, which is usually the most popular trading pair with USDC.
It’s worth noting that these high yields are likely to be short-lived if the demand and hype for BONK slows down in the coming weeks, and traders take profits. However, it is important to mention that despite being fashioned as a meme coin, Bonk tokens are seeing steady adoption in the Solana ecosystem.
Over 1 billion BONK was burned in the last 24 hours, according to tweets, showing some use-cases of the token within the ecosystem.
The interest around Bonk has also likely contributed to the demand for SOL tokens, which is the native token of the Solana network. As such, it will be interesting to see if the interest in Bonk continues to drive growth in the Solana ecosystem or if it will eventually fizzle out. Regardless, the sudden rise of this meme-inspired token highlights the volatility and potential for high returns in the crypto market for both traders and liquidity providers.
