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Following a recent price increase, Solana-based meme coin Bonk (BONK) has been one of the top gainers among the top 100 crypto assets in the last 24 hours.
BONK rose as much as 8% within the last 24 hours but has retreated at press time to trade down 3.33% in the last 24 hours. However, BONK remains higher by 20% weekly.
BONK's 20% rally in the past week might be largely due to Bitcoin profits being redistributed into smaller altcoins, as traders look for opportunities outside the top cryptocurrencies.
Tomiwabold OlajideAs Bitcoin consolidates after its recent run, altcoins like BONK and Dogecoin have captured the interest of investors seeking higher potential gains in a speculative environment.
According to Santiment, an on-chain analytics platform, meme coins like Dogecoin and BONK were major stories on Wednesday, with spikes in price across the sector.
Meme coins surge as Bitcoin profits get redistributed
Bitcoin, the largest cryptocurrency by market capitalization, surged to a nearly three-month high of $68,399 in Wednesday's trading session, capping three days of continuous gains before falling. As Bitcoin topped $68,000, meme coins headlined altcoins' continued growth, with Dogecoin and BONK surging ahead.
The recent spike in BONK's price is part of a broader trend in the meme coin sector. These speculative assets are experiencing renewed interest as profits from Bitcoin are being redistributed across the cryptocurrency market.
This redistribution is a common phenomenon where gains from more established cryptocurrencies like Bitcoin are reinvested into altcoins, driving their prices up. According to Santiment, "Speculative assets continue churning as Bitcoin profits get redistributed."
Santiment suggests that altcoins can continue to grow, as long as crowd FOMO (fear of missing out) does not get in the way. Excessive buying driven by FOMO could lead to a price correction as investors take profits.
Alex Dovbnya
Arman Shirinyan
Vladislav Sopov
Dan Burgin
U.Today Editorial Team