Despite a token-burning event that removed 1.69 trillion BONK tokens, worth over $51 million, from circulation, the dog-themed memecoin Bonk failed to break out of a broader crypto slump.

In late November, the team behind the Solana-based memecoin Bonk proposed burning 1 trillion tokens under a plan called “BURNmas.” The plan involved burning 1,000 BONK for every X post with the #LetsBONK hashtag and 10,000 BONK for every new follower on Instagram and TikTok. BURNmas was initially scheduled for December 25.

However, it exceeded the target, and BonkDAO members voted in favor of an updated proposal to burn 1.69 trillion BONK tokens on December 26 at 5:40 pm UTC.

This represents 1.85% of the 90.97 trillion BONK tokens currently in circulation, down from 100 trillion, according to CoinGecko data.

BONK Price Declines

Token burning is a common strategy to increase token prices by creating a more favorable supply and demand dynamic.

However, despite this strategy, the token has failed to replicate the success it saw from the burning of 100 billion BONK tokens on November 13. During that period, the token price increased by 56%, reaching a new all-time high market cap of $4.38 billion within a week.

Since the December 26 burning event, the token has decreased by 7.2%, with its market cap falling to $2.3 billion. This has occurred amid a broader market downturn.

While the reason for the sell-off is unclear, some Bonk enthusiasts expressed frustration with the Bonk team for failing to execute the burn on Christmas Day as promised.

Hours before the burn event on December 26, X user BestBets told Bonk core contributor Nom:

“The price continues to drop because you guys didn’t keep your word and didn’t communicate well.”

BestBets added, “You will lose a lot of progress and coin holders by lying to the community.”

X user PootieCoin commented, “I’m losing trust.”

Despite the price drop, BONK remains the fourth-largest memecoin in the growing $105 billion market, trailing only Dogecoin, Shiba Inu, and PEPE, according to CoinGecko data.

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