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BONK Rallies Due to Social Activity: Why is a Social Coin a Strong Coin?

Just recently, it has been revealed that the Solana-based meme coin, BONK, has emerged as a top gainer among the strongest cryptocurrencies.

In just 24 hours BONK’s price rose to $0.0000127 which, although may not seem like a lot, is a gain of more than 26%. The daily trading volume also increased by 160%, reaching $326 million, and the market cap has been pulled past the $800 million mark, making it the 81st largest crypto token on the market.

The reason behind this rally can be pinpointed to BONK’s social volume, which recorded a 97% rally during the 24 hours that investment increased. Data suggests that the majority of this social activity came from social media platform X and the instant messaging app Telegram.

Despite BONK’s success, its mother token, Solana, has experienced a challenging start to the year, dipping by around 2.2% to a price of $94. According to Cryptosoho, this places Solana as the fifth strongest coin behind BNB, which is currently sitting around the $300 mark.

What is Social Volume?

As mentioned before, social activity played a large part in BONK’s recent success, with the social volume catapulting to new highs. In the world of cryptocurrency, social media and forums are essential for the growth of coins, as they are the main source of news relating to millions of investments.

If the prospects for a coin are looking up, its social activity will turn positive. If the social activity is positive, then it spreads, and the social volume begins rising – by 97% in the case of BONK. In response to a higher social volume, more investors will rally toward the coin, which subsequently drives up the price.

Is a Social Coin a Strong Coin?

Social volume doesn’t necessarily indicate that a coin is ‘strong’. Take the case of Dogecoin, which saw a 9% swing on January 9th. This swing came in response to a fake social media screenshot that suggests Kabuso – the token dog for the cryptocurrency – has passed away. As a result, Dogecoin rose to $8.3. But after the information was confirmed as fake, that price dropped to $7.6. The X account was subsequently deleted.

The damage to Dogecoin goes beyond the rise and fall of the token price. For a while now, crypto observers have been criticising the asset class for its market manipulation and speculative nature, and this has only added fuel to the fire.

The X post, while initially positive for the token, ended up harming the reputation of Dogecoin more than it propelled it. Add to this that the volatile period wiped out a number of leveraged trading positions. According to various data sources, as much as $674,000 worth of leveraged derivatives trades got liquidated in just under one hour, topping all other asset liquidations.

The Tricky World of Social Media

With this in mind, a ‘social coin’ can be both a successful coin or a coin in danger. In the case of BONK, it was undeniably the former, but it doesn’t take long for social media to turn. Because blockchain is so connected to the biggest social media platforms like X, Instagram, Facebook, and LinkedIn, it is subsequently dependent on it. Crypto volatility is bolstered as a result. If a price swings, then social media can ensure it swings harder. If a price drops, then social media can ensure it drops all the way to the bottom.

It’s hard to tell how things will turn out – as you’ve probably realised, social media can be just as volatile as cryptocurrency itself! So the most important thing an investor can do is make sure they keep a finger on the pulse and give credence to a coin’s social activity.

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