# Bonk token goes bonkers as traders chase after high yields in the Solana ecosystem
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” Bonk token goes bonkers as traders chase after high yields in the Solana ecosystem “
According to the project’s website, Bonk is the first dog token on the Solana blockchain. Initially, 50% of the token supply was airdropped to Solana users with a mission to remove toxic Alameda-styled token economics. The airdrop resulted in more than $20 million in trading volume according to the Solana decentralized exchange Orca.
High yield returns
Liquidity providers (LPs) stand to benefit from interacting with Bonk, and on Jan. 4, LPs are earning over 999% APR, which is much higher than the popular SOL/USD Coin (USDC) pairing.
While high yields do not always stay high, the current rates show large market demand for Bonk. In addition to the increase in demand, Bonk also burned 1 billion of supply on Jan. 3.
WE BURNED 1 BILLION BONK TOTAL TODAY pic.twitter.com/XDHP2YzXzu
— degen poet (@degenpoet) January 4, 2023
Solana (SOL) bounces alongside Bonk
Blockchains like Solana benefit from increased usage. After the FTX collapse, Solana saw multiple projects leaving the ecosystem. On Jan. 4, Solana saw an 18.6% increase in 24-hour fees and a 15.8% increase in 24-hour daily active users.
In addition to fees and daily active user increases, SOL price rallied above $14 on Jan. 4 for the first time since Dec. 14. Some crypto market participants are attributing Bonk’s growth to Solana’s price action.
Solana is up 33% in two days as newly launched dog coin BONK gains community hype pic.twitter.com/XusvGHg24X
— Joe Weisenthal (@TheStalwart) January 3, 2023
While Bonk is merely a meme token, the increasing demand is a positive sign for the Solana blockchain. This is a sign that Vitalik Buterin may get his wish that Solana gets a “chance to thrive.”
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