The competition between BONK and Pudgy Penguins (PENGU) on the Solana blockchain is intensifying.
Bonk (BONK) has reclaimed its position as the most capped meme cryptocurrency on the Solana blockchain, with a market cap of $2.332 billion, just edging out PENGU, which maintains a market cap of $2.331 billion at the time of writing.
Currently, the Solana blockchain has become a battleground for memecoins, which are fighting for supremacy on this blockchain.
In the past week, Pudgy Penguins' native token, PENGU, which was launched on December 17, has managed to stand out and position itself among the main cryptocurrencies on the market. According to data consulted on crypto asset price monitoring platforms, after its launch, PENGU quickly rose and positioned itself as Solana's main meme cryptocurrency, but BONK has not been willing to give up its position without a fight.
The meteoric rise of PENGU
Pudgy Penguins (PENGU) was launched as the native token of the eponymous NFT collection on the Solana blockchain. Since its launch, this token has seen exponential growth, becoming the most capitalized memecoin on this blockchain. Its popularity was largely due to the Pudgy Penguins community, which already had a strong following thanks to its NFTs. In addition, the development team’s strategy helped drive PENGU’s adoption and value.
However, in the last few hours, the situation has changed dramatically. BONK, which had been the most capitalized memecoin on Solana until the arrival of PENGU, has managed to regain its position.
BONK regains the throne, PENGU resists
According to CoinGecko data, the price of BONK has seen a significant rally, placing the memecoin back in the top spot in the SOL ecosystem. BONK currently has a market cap of $2.332 billion, slightly outperforming PENGU, which maintains a market cap of $2.331 billion.
Source: CoinGecko
Burning of 1,8% of BONK's total supply boosts its price
One of the main reasons behind the recovery of BONK price, which is above $0,0000308 at the time of writing, is the 1,69 billion BONK tokens burned which will be decided by the project community in the coming days.
Via X, BONK developers revealed that they raised 1,69 billion tokens during the Christmas event, BURNmas, and are now waiting for a DAO multisig vote to burn all of these tokens, which represent approximately 1,8% of the total token supply.
If the Bonk community approves this token burn, the move will reduce the supply of BONKs in circulation, which often tends to have a positive effect on the price due to the law of supply and demand. Thus, token burning is a common strategy in the cryptocurrency world to increase the value of a token and reward long-term holders.
The BONK community has responded positively to this move, which has contributed to the price recovery. In addition, the potential token burn has generated confidence among investors, who see this action as a commitment by the community and developers to maintain the value and stability of BONK.
The dynamics of the memecoin market on Solana
The Solana memecoin war is a perfect example of the volatility and dynamics of the cryptocurrency market. PENGU and BONK have shown that the popularity and value of a memecoin can fluctuate rapidly in response to various actions and events. The BONK token burn has been a key factor in the token’s recovery, but the competition between these two digital assets remains intense.
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