It’s dog token season again, and a few well-known tokens are giving their owner double returns.A financial inflow to the Solana blockchain and a growth in riskier bets on tokens based on the network have caused Bonk, a token with a Shiba Inu motif that was first launched last December, to return almost 1,000% in the previous month.
Following dogecoin (DOGE) and shiba inu (SHIB), bonk has surged more than 70% since Sunday, making it the third-largest token with a dog theme.Its market value of $500 million now exceeds that of BabyDogeCoin ($350 million) and floki (FLOKI) by $400 million.
Although bonk was once designed as a meme coin, the Solana ecosystem quickly embraced it.In the weeks following launch, several Solana projects implemented “burn” methods for NFT-based events, while others integrated the token for use as payment for NFTs.According to what CoinDesk previously learnt from one of the various developers, Bonk is a group of 22 people without a single leader who were all involved in the project’s beginning.Each has already developed non-fungible tokens (NFT), decentralized applications (dapps), and other similar goods on Solana.
The Solana ecosystem has garnered significant attention, which appears to have increased the token’s appeal since October.The amount of trading volume reached $80 million on Tuesday, which is ten times more than the $8 million daily average at the beginning of November.Data indicates that in tandem with the token’s price increase, traders have also opened highly leveraged bets.From less than $10 million at the beginning of November, open interest, or the total amount of unfilled futures positions, surged to $100 million on Tuesday.
CoinGecko data reveals that other tokens with a dog theme have also appreciated during the last day.SHIB increased 10% and DOGE increased 16%.Conversely, FLOKI dropped after investors cashed in following a 25% increase on Tuesday.