Last week, Solana (SOL) fell to its lowest level since February 2021. But its price has risen over 12% in the past 24 hours on Tuesday after almost nine days of consecutive losses that brought its price to around $8 on Friday.
Amid Solana’s movement, the two largest cryptocurrencies by market cap — Bitcoin and Ethereum — both shifted less than 1% in the past 24 hours, showing some stability.
Solana has been volatile for a number of reasons in recent weeks, including one of its most prominent backers being the now-disgraced former FTX CEO Sam Bankman-Fried and top NFT projects planning to leave its blockchain.
But some are crediting the recent spike to interest from Solana community members in Bonk (BONK), a new meme token that airdropped about 50% of its 56 trillion token supply to users last week. Airdropping is when a cryptocurrency sends a free supply of its token to a number of crypto wallets in a way to gain users or reward loyal community members.
“We’re here to reward everyone that made #Solana what it is today,” the Solana-focused dog coin tweeted about a month ago before gaining traction.
About 20% of Bonk’s total airdrop supply went to Solana NFT collections, which consisted of almost 300,000 individual NFTs. The Shiba Inu–themed cryptocurrency has risen about 96% in the past 24 hours, according to CoinGecko data.
While Bonk gains steam, it’s highly likely that it will have a similar fate to other meme or dog-focused crypto tokens that often see a pump, followed by a steep dump and little to no recovery. In the meantime, however, it has helped the Solana ecosystem gain momentum in a time when many crypto players saw it as a goner.
As there has been some slight recovery for Solana, its future remains uncertain even amid its dog coin–related hype. As of today, Solana has dropped from being the fifth-largest token in early November to the 15th largest and is the number one trending cryptocurrency on CoinMarketCap.