The Solana-based meme coin BONK has seen its price fall over 7% despite a major deflationary move: the permanent burning of 1.69 trillion tokens in a community-driven event dubbed “BURNmas.” While token burns are typically bullish signals—reducing supply to increase scarcity and potential value—this time, the market reacted differently. Investors remain puzzled: Why did BONK drop after such a significant burn?
This article explores the recent developments, analyzes market dynamics, and unpacks whether this dip presents a short-term setback or a long-term opportunity for BONK holders.
What Was the BURNmas Event?
On December 26, the BonkDAO community executed one of the largest token burns in meme coin history—removing 1.69 trillion BONK tokens from circulation. This represented over 1.8% of BONK’s original 100 trillion supply, reducing the total to approximately 90.97 trillion tokens.
The Total Supply of $BONK is now down to 91 Trillion Tokens from its original 100 Trillion ❗️
The initiative, named BURNmas, was designed as a holiday-themed engagement campaign. Initially proposed in late November, it incentivized social media participation:
- 1,000 BONK burned per X (formerly Twitter) post with #LetsBONK
- 10,000 BONK burned per new follower on Instagram and TikTok
Originally targeting a 1 trillion token burn, overwhelming community response pushed the final amount to 1.69 trillion, approved via a DAO vote. The burn was sourced from the Bonk multisig wallet, ensuring transparency and decentralization.
👉 Discover how token burns can reshape market dynamics and investor sentiment.
Why Do Token Burns Matter?
Token burns are a strategic mechanism used across the crypto ecosystem to influence supply and demand. By permanently removing tokens from circulation, projects aim to:
- Increase scarcity
- Boost perceived value
- Signal long-term commitment
- Counteract inflationary pressures
For meme coins like BONK, which launched with an enormous supply, burns are especially critical. They help transition from a hyperinflationary model to one with deflationary traits—potentially making each remaining token more valuable over time.
Historically, BONK has responded positively to burns. After a 2 million dollar burn in July, the price surged by 25% in the following days. That precedent raised expectations for BURNmas—yet this time, the outcome diverged sharply.
Why Did BONK Price Fall After the Burn?
Despite the bullish fundamentals, BONK dropped over 7% post-BURNmas. Several interrelated factors explain this counterintuitive move.
1. Broader Market Downturn
The decline coincided with a risk-off sentiment across the cryptocurrency market. Bitcoin struggled to reclaim the $100,000 psychological barrier, leading investors to de-risk positions in altcoins and meme tokens. With reduced liquidity and momentum, even positive news like a large burn couldn’t sustain upward pressure.
2. Low Holiday Trading Volume
December 26 fell within the holiday trading lull, when institutional activity slows and retail participation dips. BONK’s 24-hour trading volume dropped by over 8%, limiting price resilience. Thin markets are more susceptible to sell-offs, especially when large holders (whales) decide to take profits.
3. Delayed Execution and Lost Momentum
A key point of frustration among the community was the delay in executing the burn on Christmas Day, as originally promised. Many investors viewed the event as a festive catalyst for a year-end rally. When it missed that window, confidence wavered.
“We were ready to celebrate BURNmas on Christmas. The delay killed the hype,” tweeted one user.
Such sentiment may have triggered preemptive selling, undermining the psychological boost the burn was meant to deliver.
4. Competition from New Meme Coins
The rise of Pudgy Penguins’ PENGU token added competitive pressure. Launched just days before BURNmas, PENGU quickly amassed a $2.2 billion market cap and briefly surpassed BONK as Solana’s largest meme coin on December 26.
PENGU outperformed BONK significantly—up 32% in a week compared to BONK’s 7.2% gain—drawing capital away from established projects toward newer narratives.
Is This a Buying Opportunity?
Despite the short-term dip, technical indicators suggest potential for recovery.
At press time, BONK formed a “god candle” on its daily chart—a large bullish candle indicating strong buying pressure, often linked to whale accumulation. This surge helped recover some losses, pushing the price back to $0.000030.
Key levels to watch:
- Support: $0.000028
- Resistance: $0.000034 (tested twice this week)
If buying momentum continues, especially with renewed community engagement or exchange listings, BONK could break past resistance and re-enter an uptrend.
👉 See how top traders analyze candlestick patterns to predict price reversals.
Core Keywords & SEO Integration
This article naturally integrates high-intent keywords that align with search trends and user queries:
- BONK price prediction
- BONK token burn
- Solana meme coin
- BURNmas event
- BONK price analysis
- meme coin investment
- crypto token burn effect
- BONK vs PENGU
These terms are woven into headings, body content, and FAQs to enhance visibility without compromising readability.
Frequently Asked Questions (FAQ)
Why did BONK go down after burning tokens?
Token burns are generally bullish, but BONK’s drop was influenced by broader market weakness, low trading volume during the holidays, and investor disappointment over the delayed burn execution. Additionally, capital rotation into newer meme coins like PENGU contributed to the sell-off.
How many BONK tokens were burned?
A total of 1.69 trillion BONK tokens were burned during the BURNmas event—equivalent to about 1.8% of the original supply—reducing the total from 100 trillion to approximately 90.97 trillion.
Does burning tokens increase price?
In theory, yes. Burning reduces supply, increasing scarcity. If demand remains constant or grows, this can drive up price. However, external factors like market sentiment and trading volume play crucial roles in real-world outcomes.
Is BONK a good investment in 2025?
BONK has strong community support and recurring deflationary mechanisms like burns. While volatile, its position as a leading Solana-based meme coin gives it visibility and potential for growth, especially during bull cycles or platform-wide adoption surges.
What is BURNmas?
BURNmas was a holiday-themed community event where BonkDAO burned tokens based on social media engagement using #LetsBONK. Originally targeting 1 trillion tokens, it exceeded expectations and burned 1.69 trillion due to high participation.
Could BONK surpass its previous highs?
Yes—technical indicators like the recent “god candle” suggest accumulation by large investors. If market conditions improve and hype returns, BONK could challenge its resistance at $0.000034 and potentially push higher in early 2025.
👉 Stay ahead of market shifts with real-time data and advanced trading tools.
Final Thoughts
The post-BURNmas dip in BONK’s price highlights a crucial truth about crypto markets: fundamentals matter, but timing and sentiment matter more. While the burn was a strong deflationary move with long-term benefits, short-term forces—including macro trends and competitive dynamics—can override even the most well-executed community events.
For investors, this moment may represent a strategic entry point. With reduced supply, active governance via BonkDAO, and growing competition fueling awareness across Solana’s ecosystem, BONK remains a key player in the evolving meme coin landscape.
As always in crypto: volatility is inevitable, but opportunity often follows fear.