The crypto asset’s market cap has surpassed $1.8 billion, surpassing another Solana-based dog-themed meme coin, Dogwifhat (WIF), which has a market cap of $1.71 billion. The daily transaction volume of Meme coin was around 544 million dollars, an increase of 155% compared to the previous day. However, BONK is still down 44% from its all-time high of $0.000047 reached on March 4.

BONK, which gained popularity in 2023, experienced a significant rise as the meme coin craze increased the value of Solana.

Originally known as another dog-themed meme coin, BONK has expanded its use case to include decentralized finance (DeFi) integration. The project also collaborates with cross-chain communication protocols, NFT marketplaces, and various other crypto market ecosystems.

BONK trading pairs are now available on major exchanges such as Binance, Coinbase, OKX and Bitstamp.

BONK’s latest price increase follows a July 8 post by BONK DAO, the decentralized autonomous organization that oversees the Bonk project. The post announced a proposal from the Treasury to burn 84 billion BONK tokens (worth $2 million). These 84 billion tokens were transferred to DAO by BONKBot in the second quarter.

Token burning is the process of permanently removing a certain number of tokens from circulation, usually resulting in a decrease in supply. This reduction in total available supply could create a scarcity effect, potentially increasing demand and driving up the token price.

Additionally, according to a post from whale tracker FishTheWhales, whales are buying BONK, which is contributing to the price increase.

BONK’s recent price increase also coincides with a broader rally in meme coins.

Among them, the frog-themed Pepe (PEPE) emerged as the second best performing coin on Tuesday, with investors gaining more than 12% in the last 24 hours. The Ethereum-based token experienced a 42% increase in volume, reaching $1.12 billion, the highest among meme coins.

Other popular meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) also gained 3.9% and 3.11% respectively.

Overall, meme coin market cap increased by 7% in the last 24 hours to $42.53 billion. This meme coin rally comes as major cryptocurrencies such as Bitcoin begin to recover after falling below a five-month low of $55,000 on July 5.

Last week, Bitcoin (BTC) closed around $55,850, down 11% from the previous week’s closing price of $62,775. Significant selling pressure pushed BTC as low as $53,500 on Thursday, before recovering to $58,250 and closing at $55,850.

During this decline, BTC Spot ETFs saw net inflows of $238 million. Total transaction volume since their inception has been approximately $315 billion, reflecting the decline in transaction activity typical in Q3.

Matteo Greco, Research Analyst at Fineqia International, said this decrease in activity should be seen as a seasonal trend rather than considered a negative. Interestingly, the recent price movement did not correlate with BTC Spot ETF flows, deviating from past patterns where ETF flows significantly impacted prices.

“For the first time since their establishment, there is a clear divergence between price movement and capital flows. This suggests that recent price movements are primarily driven by transaction activity within the crypto-specific space,” Greco said.

As of Tuesday, Bitcoin reached $57,515, up over 3% from the previous day. The lowest and highest levels in the last 24 hours were $ 55,256 and $ 57,879 respectively.

Bitcoin’s dominance decreased by 0.26% to 53.64%, indicating increased activity in the altcoin market. The global crypto market value increased by 3.4% to $2.12 trillion.