BonkDAO To Burn 1.69T BONK Tokens Worth $54M, Price Rally Ahead?

BonkDAO has announced on December 25th a significant token burn initiative dubbed “BURNmas,” planning to destroy approximately 1.69 trillion BONK tokens, valued at US$54.52 million. 

The massive burn represents nearly 1.8% of BONK’s total supply, which currently stands at around 92.7 trillion tokens. 

The implementation of this burn will be executed through BonkDAO’s multi-signature voting system, demonstrating a community-driven approach to token supply management. 

The scale of this burn event has exceeded both the community’s and the DAO’s initial expectations, showcasing strong community participation and support for the initiative.

Also Read: BONK Investor Dumps $14.4M Worth of BONK on Coinbase, BONK Price Set To Dip?

Historical Context and Previous Burn Impact

The upcoming burn follows a notable precedent set in April 2024, when the BONK DAO community approved a burn of 278 billion tokens. 

That previous burn event demonstrated significant market impact, with BONK’s price reaching impressive highs of approximately $0.000041 on May 28 and further climbing to $0.000053 on November 21. 

The market response was substantial, with the token’s market capitalization surging 24.77% to $1.77 billion, accompanied by a remarkable increase in trading volume to $516.43 million. 

These historical results provide context for understanding the potential impact of token burns on BONK’s market dynamics, as reducing circulating supply through burns effectively decreases the number of tokens available for trading.

Current Market Status and Technical Analysis

BONK is currently trading at $0.00003254, with a 24-hour trading volume of $284,823,244. The token has experienced mixed short-term performance, showing a -3.41% decline in the last 24 hours but maintaining a positive 3.92% increase over the past seven days. 

With a circulating supply of 76 trillion BONK, the token’s market capitalization stands at $2,437,836,517. 

Technical analysis indicates that BONK is approaching the upper resistance of its falling wedge formation, alongside a significant horizontal resistance level. 

The token’s price movements suggest a potentially crucial technical setup that could influence its near-term trajectory.

Future Price Implications and Potential Scenarios

Market analysts are closely watching BONK’s potential breakout scenarios, particularly above the critical horizontal resistance level of $0.000035. 

A successful breach of this resistance could pave the way for significant upward movement, with initial targets set at $0.000040 and a subsequent target of $0.000045. Such a movement could potentially result in gains exceeding 40% from current price levels. 

The combination of the planned token burn, which will significantly reduce supply, and the technical setup suggesting a possible breakout, creates an intriguing scenario for BONK’s price action in the near future.

However, investors should note that while historical burns have shown positive price impact, market dynamics and external factors will continue to play crucial roles in determining the token’s actual price movement.

Also Read: BONK Investor Moves 610B Tokens Worth $34M From Binance Amid 125% Monthly Price Jump