- Coinbase lists the Bonk memecoin.
- Bonk becomes the third most valuable memecoin, flipping Pepe.
- Coinbase warns investors to be aware of the risks associated with Bonk.
Memecoins have long tantalized crypto investors with their potential for staggering price gains. That promise was realized again as the previously obscure Solana-based Bonk hit another all-time high of $0.00001508 on December 14, following a Coinbase listing. As a result, Bonk has now surpassed Pepe to become the third largest memecoin by market cap.
Bonk on a Tear
Pepe’s flippening caught markets by surprise, considering that Bonk started December with a relatively modest market cap of $244.3 million. However, Bonk’s price and market cap exploded by 250% to reach a staggering $863.1 million by December 9, typifying the price potential of lower cap memecoins.
The explosive move inevitably culminated in a correction as profit-taking dipped the price lower to find a local bottom of $574.8 million on December 13. However, Coinbase’s support for Bonk galvanized bulls to send the memecoin’s valuation to a new all-time high of $914.9 million.
Bonk price in dollars per CoinGecko.
Meanwhile, Pepe’s valuation hit a local top of $710.8 million on December 9, culminating with a sell-off amid the wider market downturn. However, unlike Bonk, Pepe’s valuation has since slid by 14% to $612.5 million. This change in fortunes was sufficient for Bonk to overtake Pepe, sinking the froggy memecoin into the fourth largest memecoin position.
Coinbase Tempers Enthusiam
While Bonk investors celebrate their change in fortunes, Coinbase’s support of the token comes with strings attached. The crypto exchange stated that sufficient liquidity conditions would be required before Bonk trading could begin, leading to a phased release of Bonk trading pairs.
Coinbase has stated that its support of Bonk comes “with an experimental label,” which denotes “new” or “relatively low trading volume” crypto assets. Coinbase advised investors to exercise caution and know the risks of buying cryptocurrencies with the experimental label .
On the Flipside
- Pepe investors previously slammed Coinbase for associating the project with the far right.
- Bonk’s Coinbase listing will bring improved liquidity and accessibility and risks increased scrutiny.
- BONK was launched in December 2022, making it more established than PEPE, which was released in April 2023 .
Why This Matters
The flood of capital into Bonk shows that memecoin mania is alive and well. However, investing in memecoins is a fickle business, with fortunes capable of changing in the blink of an eye.
Read about Bonk’s phenomenal run and what this suggests for Solana here:
Solana’s Bonk Nears $1B Market Cap: BONK Cooldown Incoming?
Find out more on the conviction of Bitcoin holders here:
Inactive Bitcoin Stays Firmly Planted at 70% of Supply
