Renewed Solana Enthusiasm Fuels BONK Rally; Defies FTX’s Collapse Headwinds

Solana-based popular dog-themed memecoin – BONK – has rallied by more than 537% over the past month. One of the main factors that boosted a remarkable 40% surge last week was its listing on Coinbase, which subsequently pushed its YTD increase to 850%.

BONK originated last year amid the decline of sentiment surrounding the Solana ecosystem after SBF’s downfall. But the latest data suggest that it has transcended its meme origins, finding adoption in various Solana projects, where the token is now utilized for payments.

BONK’s Rally Highlights Solana’s ‘Almost Miraculous Recovery’

According to Kaiko, the surge in BONK coincides with a renewed enthusiasm for Solana, which has demonstrated resilience despite significant challenges stemming from FTX’s collapse.

SOL stands out as one of the top performers of the year, surpassing ETH’s performance since early Fall. Notably, the SOL/ETH price ratio has reversed for the first time since 2021.

The SOL rally has reportedly disrupted the FTX bankruptcy claims market, with the FTX estate now holding around $4.2 billion SOL, up from $1.16 billion at the beginning of the year. This increase in FTX’s crypto holdings has caused the market for claims to turn “red hot.” Furthermore, the BONK rally led to a sell-out of Solana phones due to the inclusion of a 30 million BONK airdrop.

Kaiko’s findings reveal that while trade volumes of memecoins have not reached all-time highs, they have exceeded the two-year average. In fact, the trade volume for the top seven memecoins surpassed $9 billion last week, a notable increase from the yearly lows of $1 billion.

While the gains of BONK may not last forever, the token’s surge underscores the recovery of Solana. At the beginning of 2023, many had written off the ecosystem, but today, the Solana-based DeFi protocols are flourishing, and developers continue to contribute actively to its growth.

Solana Saga Phone Rides High

The BONK hype appears to have revitalized the sales of Solana’s Saga phone. This led to their sale on eBay for as high as $5,000, significantly above the original retail price of $599.

Since its initial release, each phone was accompanied by an airdrop of 30 million BONK tokens. The recent increase in BONK’s value, soaring by more than 800% in the last month, has elevated the tokens’ worth beyond the phone’s retail cost, sparking a frenzied demand. This heightened interest has caused the phone to sell out on its official website for the first time.

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