BonkDAO Announces the Destruction of 1.69 Trillion BONK Tokens Valued at Approximately $54.52 Million

This is part of their community initiative, “BURNmas,” aimed at reducing its supply from 100 trillion to 91 trillion to enhance scarcity.

Solana memecoin giant, BONK, has announced the destruction of 1.69 trillion BONK tokens from the multisig Gxbonkbonkbonk, valued at approximately $54.52 million. This announcement comes as part of their community initiative, dubbed “BURNmas,” which is aimed at reducing the total circulating supply of BONK tokens from 100 trillion to 91 trillion, ultimately enhancing scarcity.

According to the latest statement from the memecoin project, the community initiative, known as Burnmas, began on November 15, 2024, as part of a strategic effort to increase the value of $BONK by reducing its circulating supply. While the initial goal was to burn 1 trillion BONK tokens by Christmas, the enthusiastic participation of the community has led to a larger outcome.

The initiative encourages community members to participate through various social media interactions, which contribute to the total amount of tokens earmarked for burning. These include tweeting with the hashtag #LetsBonk, following official accounts, and engaging in activities on platforms like BONKbets. Each of these actions adds to the total amount of tokens slated for burning, merging community involvement with gamification.

Previous burns, for instance, occurred in November 2024, when approximately $4 million worth of BONK tokens were removed from circulation. This partly contributed to the increase in the market cap from $2.3 billion to over $4 billion within a week.

This was due to investor interest and a sense of FOMO (Fear Of Missing Out), as BONK became the most sought-after memecoin on the Solana blockchain at that time. Such an increase showcases the effectiveness of token burns in creating scarcity and driving demand.

Despite an initial positive response to the latest burn, reports indicate that $BONK experienced fluctuations and ended up trading lower than expected shortly after the burn, showing a loss of over 6% in value. On the brighter side, it also showed a slight increase of close to 6% over the previous 24 hours.

Additionally, it’s important to note that BONK remains up approximately 90% over the past year, indicating its resilience performance over the long term.

BONK/USD (Source: TradingView)BONK is currently trading at $0.00003098 at a market cap of $2.3 billion. The current RSI of 54.06 suggests slight bullish momentum, though it is not yet overbought. If buying pressure increases closer to 70, it could indicate a potential price uptrend.

An increase in buying activity may drive RSI towards overbought territory, indicating a possible correction or profit-taking phase soon.

The MACD line is above the signal line, also indicating bullish momentum. If there is a crossover above zero, it could indicate increasing buying pressure from traders. This signal may encourage traders to consider entering positions or increasing their holdings in anticipation of further price appreciation following the burn.

Traders should expect increased volatility from reactions to both BONK news and technical signals. If trading volumes increase alongside price increases, it could suggest a bullish trend, while low volume may indicate a lack of conviction.

Based on historical patterns from previous burns, traders may want to set profit targets based on previous performance metrics while remaining vigilant about broader market developments.