In a bold move that has sparked ripples throughout the crypto community, BONK DAO has put forth a new proposal to burn 2.025 trillion $BONK tokens. This dramatic action is being set to coincide with two significant events: the ending of the much-anticipated BONKDragon campaign and festivities surrounding the 2025 Lunar New Year. The decision comes at a critical juncture for the project, as the community rallies to build on recent momentum and move $BONK toward greater acceptance and recognition in the marketplace. BREAKING: @bonk_dao introduces a proposal to burn 2.025T $BONK to mark the end of the BONKDragon campaign and the 2025 Lunar New Year. pic.twitter.com/KZQrteAkks — SolanaFloor (@SolanaFloor) February 6, 2025 The suggested burn represents a substantial portion of the total supply of $BONK, and if put into action, it would dramatically decrease the overall circulating supply of the token. If investors view the proposal positively, as a lot seem to be doing, then they could also view it as BONK’s team taking steps toward making the token more scarce, and therefore more potentially valuable in the future. Along with this proposal, the whole ecosystem seems to increasingly drive serious market activity, with the BONKBot being especially singled out for praise. BONKBot’s Burn Activity and Surging Revenues What has set the BONK ecosystem apart has been the performance of the BonkBot. The Bot, in the last 24 hours, has burned an impressive 848.11 million $BONK tokens, which equates to roughly $14,819 at current prices. This rapid pace of token burns has significantly furthered the project’s overall efforts to reduce the circulating supply of $BONK. In its lifetime, the Bot has burned a total of 614.6 billion and has signaled the death of a not-so-missed 10.74 million dollars. @bonkbot_io has burned 848.11 MILLION ($14,819) $BONK in the last 24 hours This brings the total $BONK burned by BONKbot to 614.6 BILLION At current $BONK prices, that is $10.74 MILLION lifetime BURNT — BONKbot Burn Bot (@BONKbotBurnBot) February 7, 2025 BonkBot’s ongoing success isn’t merely a matter of consuming tokens; it’s also about raking in substantial revenues. DefiLlama’s data indicates BonkBot is reeling in $400 million (annualized figures) as “revenues.” And these numbers are all directed toward buying up $BONK tokens. And if that doesn’t blow your mind, this setup plants BonkBot squarely in the realm of the most vomitous profit-seeking activities imaginable in crypto today. Indeed, if this were a “real” business, we’d have no choice but to view this token-revenue bonanza as an incredibly unsustainable quasi-ponzi scheme. DefiLlama’s revenues for BonkBot has $400m annualized. It all buys $BONk . At $1.3b mcap that’s a “PE” of 3.2. Tech companies normally 25-30 with outliers up to 300. 10b mcap would be rational and euphoria maybe 40b. @theunipcs is right, obviously going much higher… — bakes (@AlphaBakes) February 7, 2025 Such a low PE ratio suggests that $BONK might be a still undervalued token, offering a tempting long-term bet for investors. If the market cap were to rise to some not unreasonable figure like $10 billion, given that we’re onboard with the trajectory that $BONK seems to be on, the PE ratio would likely rise in step. Some wilder speculators posit a potential $40 billion market cap for $BONK in a fantastical next bull run, which would make it a major force in the cryptosphere and the next Capcoin coming down the pike. Market Momentum: Technical Indicators Show Promise In addition to the basics, technical analysis is also displaying positive indicators for $BONK. The TD Sequential, a widely used tool for monitoring price trends and spotting buy signals, has given a strong buy signal on the daily chart for $BONK. This is interpreted by many as forecasting a price rebound that could occur in the not-too-distant future, and it has certainly reanimated the $BONK trading and investing community. The buy signal follows a stretch of market consolidation. With such upcoming events as the proposed token burn and the surging activity around the BONK ecosystem, traders are waiting with bated breath for the next move. If the price of $BONK makes a significant uptick, it could be not just with the reduced supply from the burns driving it, but also bullish market sentiment that’s beginning to coalesce. The Impact of the Token Burn Proposal In recent months, one of the most significant developments for the BONK community has been the proposal to burn 2.025 trillion $BONK tokens. The BONK community has seen several surprises and developments over the past month, but the news of a potential token burn was by far the most positively received. In theory, burning tokens should in a straight-line way correlate with the price increase and with the safety of the asset, and the community was excited for a number of reasons that we have discussed at length. They also were excited because this potentially leads to what I called in a tweet earlier this week the “increased scarcity narrative.” The influence of BonkBot and its consistent revenue generation, when combined with the token burn, make BONK an exciting project in the crypto space. The technical indicators surrounding the project seem to be positive, and the burn rate seems to be accelerating. For the average investor, these developments might create what is sometimes referred to as a “hype cycle,” meaning we could be in for some serious upside. The TD Sequential indicator has flashed a buy signal on the $BONK daily chart, suggesting a potential price rebound ahead! pic.twitter.com/OIg4x4Uhla — Ali (@ali_charts) February 7, 2025 BONK’s Future Prospects As BONK DAO works to burn tokens and grow the ecosystem, the reaction of the larger crypto market is of concern to us. We are watching that with interest. With the Lunar New Year and the BONKDragon campaign, we have a perfect backdrop for these developments to coincide with a surge of interest from both retail and institutional investors. The increasing burn activity, along with some strong technical signals, has us thinking that BONK may be positioned for an impressive rally. Of course, the nature of the crypto market means that could happen or not happen irrespective of what we think might be happening or not happening. At least, that’s how the crypto market seems to operate. BonkBot’s success and impressive revenue generation also raise questions about what this means for the BONK ecosystem. If BonkBot keeps doing well and keeps burning tokens, we could have a situation where supply and demand changes are self-reinforcing and going in our favor: reduced supply, increased demand, and some natural drift upward in the price of $BONK. Conclusion The $BONK token and the impressive performance of BonkBot are setting the stage for what’s potentially an exciting future for $BONK. With a low PE ratio (not a measure of future performance, but of current valuation), promising technical indicators (not predictions of future price, but indications of future potential), and an expanding real-world use case (that is, a context in which people are using $BONK), we’re seeing signs that $BONK has a shot—according to some in the crypto community—at a breakout when the price goes up and/or the market cap expands. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: peshkov/ 123RF // Image Effects by Colorcinch
