- While SOL’s price increased by 2.58%, BONK jumped by 20% in the last 24 hours.
- Going by its previous performance, the memecoin’s value could increase five folds.
The price of Bonk [BONK] increased by 20.04% in the last 24 hours, driving the token close to its all-time high. The price increase ensured that BONK hit $0.000032 on the 21st of May.
However, BONK’s price had dropped to $0.000031 at press time. But AMBCrypto could not help but notice how the memecoin outperformed Solana [SOL] by a wide margin.
For those uninitiated, SOL is the native token of the blockchain on which BONK was built. As of this writing, SOL changed hands at $182.01— A 2.58% increase within the same period.
Is the memecoin leaving Solana behind?
In past times, BONK has displayed a strong correlation with SOL. However, the difference in performance was not always this big, suggesting that Solana could be lagging compared to other large-cap tokens.
Beyond this, AMBCrypto examined BONK’s social volume. According to Santiment, the social volume jumped. This metric tracks the number of arbitrary search texts related to a cryptocurrency.
However, the metric had a reading of 9. When compared to the period the memecoin skyrocketed to $0.000038, this was a low figure.
Source: Santiment
At that time, social volume hit 110, after which BONK’s price plummeted from $0.000038 to $0.000022 within a few weeks. Hence, an inference taken from this was that search for BONK has not hit a FOMO stage.
FOMO stands for Fear Of Missing Out, and it denotes a period where participants who faded buying a token at a low price begin to purchase it when the price moved a lot higher.
Why a 5x price increase is possible
When this happens most times, intense correction takes place as early adopters cash out their gains, leaving late buyers stranded. For BONK, this might not be the case as of now.
Instead, the price of the token has the potential to rise much higher than the current value. If that is the case, then the market cap of Bonk could hit $10 billion before the end of this cycle.
At press time, the cryptocurrency’s market cap was $2 billion. Market cap is the product of price and circulating supply. Therefore, if the number of tokens in circulation remains the same, a $10 billion market cap would mean BONK’s price might hit $0.000155.
Source: CoinMarketCap
Considering the kind of performance the token has put in the last year, this does not sound unreasonable. However, it might not happen within a short period.
But if the bull market lasts over the next two quarters, the cryptocurrency might hit this target.
Realistic or not, here’s BONK’s market cap in SOL terms
Regardless of BONK’s price action, there is no denying that the memecoin might still need Solana to thrive.
If the price of SOL dumps, there is a high chance that BONK might do the same. However, this does not take away the token’s potential to 5x its value in a few months.