Key Takeaways
BONK has burnt 500 billion tokens amid an aggressive deflationary plan that could fuel the memecoin’s next phase of the uptrend. However, will the market bulls hold their ground?
BONK’s team has ramped up the memecoin’s deflationary program, something that could boost its recovery on the price charts.
On 24 July, BONK burnt 500 billion tokens based on the fees generated by its memecoin launchpad letsBonk, also known as BonkFun.
The move followed a recent announcement that set aside 1% for a buyback program. It stated,
“Starting today, 1% of BONKfun’s total revenue will be reassigned from our marketing fund into buying back the top pairs within the BONK ecosystem.”
Source: LetsBonk
The project had a total revenue of 217k SOL (Worth about $39 million) on 24 June. The 500 billion tokens burnt were worth $16.7 million, mirroring the 50% revenue target for buy/burn rates.
Chipping from the marketing fund to further reduce supply could be the flywheel for the memecoin if broader market sentiment remains positive.
BONK consolidates its July gains – What’s next?
On the markets front, BONK’s positioning appeared to be slightly bullish at press time.
In fact, according to CoinGlass, top Binance traders who were bullish on the memecoin rose from 56% to 60% in just 24 hours.
Source: CoinGlass
This meant that leveraged bulls expected a bigger rally, despite the memecoin surging by over 158% in July.
From a price chart’s perspective, the prevailing cool-off has been happening at a key area around the Fibonacci retracement level. Notably, BONK has been consolidating its recent gains too, despite a spike in profit-taking.
However, bulls can only have a market edge if they turn the 1.618 Fib level ($0.000036) into support. Securing the level as the next springboard could trigger another 46% upswing to $0.000052.
Source: BONK/USDT, TradingView
Otherwise, a pullback to $0.000025 and May’s high could be feasible if the bulls falter.
Still, these could be the buying opportunities for spot players if the broader market sentiment remains positive ahead of September’s expected Fed rate cuts.
A break below May’s high would dent the market structure and embolden short sellers.
Overall, BONK’s aggressive deflationary program could be a crucial catalyst for the memecoin’s next leg of the rally. However, only if the broader market sentiment remains constructive and positive.
