This Solana-based token has rallied by 101% in a week and could reignite the meme coin rally

Solana is making the headlines with Breakpoint at the moment as the month of crypto conferences is upon us. Starting Monday, the developer meetup is expected to generate some significant bullishness for SOL as well as the entire ecosystem. 

However, even before the conference begins, one of the tokens based on the network is causing ripples in the meme coin community.

Solana Breakpoint BONKs memecoin market

Bonk (BONK), a Solana-based meme coin, has generated significant interest among investors over the past week. The token, which is based on the “Bonk” meme, has rallied by more than 100% in just seven days, entering the watchlist of analysts.

BONK/USD 1-day chart

While the Bitcoin ETF-fuelled rally pushed many tokens upward, BONK stands out for the potential it represents in the crypto market. The cryptocurrency is the first meme coin in a long time to post such gains in such a short span. More than the rise, the demand for Bonk is also rather significant.

In the last 24 hours, the memecoin has observed investors conducting transactions consistently, generating volume worth over $19.5 million. Given that the total market capitalization of Bonk at the time of writing is a little under $34.5 million, the 24-hour volume alone is worth more than half the value of the entire circulating supply of BONK.

BONK market capitalization and 24-hour trading volume

This, according to popular analyst Miles Deutscher, is both a potentially great and terrible development. As he stated on X, formerly Twitter,

“There are 2 scenarios here: 1. SOL tops around Breakpoint, and BONK retraces even further - fitting my SOL short-term short bias. Or, 2. This is the start of a proper move, and memecoins gain steam. 

Put simply, since the volume of the transactions conducted in a day is so high in comparison to the market capitalization of BONK, a liquidity crisis is not too far from the realm of reality. But if the meme coin manages to avoid that and keep on rallying, it could induce bullishness in its peers such as Dogecoin, Shiba Inu, and Floki Inu.

Watch out for Solana price rise too

Since Breakpoint is the first major event conducted by Solana since the FTX collapse last November, a lot of pressure sits atop its shoulders. The success or failure of the event could translate to either a rally or a crash in Solana price, which is why the altcoin is currently on the hot list of many analysts and traders who are looking to both long and short the asset.

In a bullish scenario, SOL is expected to shoot up from $34 to $37 and likely even breach $40, while a bearish outcome would result in the “Ethereum killer” falling below $30, potentially hitting $26.

Read more about Solana price’s targets here - SOL pumps 7%, records highest daily close since FTX went down as Solana Breakpoint conference commences