Dog-themed memecoin BONK continues to struggle amid broader crypto market declines, despite its recent 1.69 trillion token burn (worth $51 million) aimed at reducing circulating supply.
The "BURNmas" Token Burn Event
In late November, the BONK team proposed "BURNmas"—a scheme to burn 1 trillion tokens by incentivizing social media engagement:
- 1,000 BONK burned per post with #LetsBONK
- 10,000 BONK burned per new follower on Instagram/TikTok
Originally scheduled for December 25, the event was postponed and expanded after community voting. On December 26, 1.69 trillion BONK (1.85% of circulating supply) were permanently removed.
👉 How token burns impact crypto prices
Why Did BONK’s Price Drop?
Token burns typically aim to boost prices by creating scarcity, but BONK fell 7.2% post-burn. Potential reasons:
- Broader Market Decline: Crypto-wide downtrend affected momentum.
Community Frustration: Delays and poor communication eroded trust.
- "Price is dropping because you didn’t keep your word." — X user BestBets
- "I’m losing trust." — PootieCoin
Historical Context
A previous 100 billion BONK burn (November 13) drove a 56% price surge, but this latest effort failed to replicate that success.
BONK’s Position in the Memecoin Market
Despite the drop, BONK remains the 4th-largest memecoin ($2.3B market cap), trailing:
- Dogecoin (DOGE)
- Shiba Inu (SHIB)
- Pepe (PEPE)
FAQs
Q: What is a token burn?
A: A permanent removal of tokens from circulation to increase scarcity and potentially raise value.
Q: Why did BONK’s price fall after the burn?
A: Market sentiment, missed deadlines, and lost community trust likely outweighed the burn’s positive impact.
Q: Is BONK still a top memecoin?
A: Yes—it’s #4 by market cap, proving lasting demand despite volatility.