Key Reason for Solana's BONK 20% Surge Explained: Details

Solana-Based Meme Coin BONK Surges Amid Wider Meme Coin Rally

Following a recent price increase, Solana-based meme coin BONK has emerged as a top gainer among the top 100 crypto assets.

BONK's Recent Rally

Within the past 24 hours, BONK has experienced an impressive 8% surge. While it has retreated slightly since then, it remains 3.33% higher than yesterday's value. Over the past week, BONK has rallied by an impressive 20%.

Reasons for BONK's Rise

BONK's recent gains may be attributed to the redistribution of Bitcoin profits into smaller altcoins. Altcoins like BONK and Dogecoin have attracted investors seeking higher potential returns in a speculative market as Bitcoin consolidates.

Meme Coins' Surge

On-chain analytics platform Santiment has highlighted the performance of meme coins, including Dogecoin and BONK, on Wednesday. These assets experienced significant price spikes.

Bitcoin Profits Drive Meme Coin Growth

As Bitcoin recently surged to a near three-month high, its profits have been redistributed across the cryptocurrency market. This phenomenon, known as redistribution, drives up the prices of altcoins.

Santiment's Outlook

Santiment suggests that altcoins can continue their growth if crowd FOMO (fear of missing out) remains in check. Excessive buying driven by FOMO could lead to a price correction as investors take profits.