As the Bonk Price Dips, Will Sponge Rally After V2 Launch

06.02.2024 / Payment system news

Bonk has suffered a price decline, down 5% so far this week and almost 8% since the start of this month.

But while Bonk slumps, the new meme coin Sponge looks bullish and was up over 500% since November before yesterday’s migration event. Is this the next meme coin to explode?

Bonk Falls as Solana Ecosystem Sees Decline

The Solana ecosystem has been dismayed this week, with its leading meme coin, Bonk, enduring significant difficulties.

Bonk peaked on 15 December at $0.00003419 but was subject to an intense selloff in the aftermath.

Since its high, Bonk has followed a continual downward trajectory, now priced at $0.000010. Its current price places Bonk 70% lower than its all-time high.

The bearish sentiment also appears in Bonk’s derivatives data, with analytics tool Coinglass reporting its Long/Short ratio has dropped below 1. Simply put, this means more people are shorting Bonk than longing it.

Since Bonk’s recent downturn, analysts have remained quiet on its next move. This is because Bonk recently broke below its 24 January low, indicating a downtrend continuation.

As such, there is seemingly no end in sight for Bonk’s selloff.

However, the bearish momentum is evident across the Solana ecosystem. This results from the aftermath of Jupiter’s airdrop that occurred on 31 January.

Massive excitement surrounding the event hit Solana, but intense sell pressure promptly followed.

Currently, SOL is down 2% since yesterday, but its ecosystem tokens are even worse for wear.

For instance, JUP is down 66% since its launch, ORCA is down 32% this week, WIF is down 35%, and MYRO is down 41%.

Meanwhile, Ethereum-based cryptos are enjoying bullish momentum, illustrating a shift in interest and momentum.

Currently, ETH is up almost 1% this week, while its leading meme coin, Shiba Inu, has held firm at $0.0000089.

Meanwhile, a new Ethereum meme coin, PepeFork, has seen a significant 588% uptick.

This move was preempted by analyst Derivatives Moneke, who speculated a “rotation” of liquidity from Solana to Ethereum in December.

Traders seeking to stay ahead of the market will be pleased to discover Sponge, the next Ethereum-based meme coin that could rally.

The token has seen notable bullish momentum ahead of its V2 launch, which occurred yesterday. This will comprise a new Play-to-Earn (P2E) game and staking mechanics.

Is Sponge Token Next to Explode After V2 Migration Event?

Investors are sometimes skeptical of new meme coins because of their limited track record, but Sponge is unique because it has just launched a V2 version after notable V1 success.

The project initially began in May 2023, benefitting from Pepe’s hype. It promptly reached a $100 million market cap, netting some early investors significant returns. Its success was propelled by a prominent community of 30K followers and 13K token holders.

While the price retraced alongside the rest of the meme coin market, the recent Sponge V2 announcement catapulted Sponge into the spotlight, causing more than a 500% price increase since November.

However, Sponge still boasts massive room for growth to catch other prominent meme coins – and aims to do so by offering a new value proposition for holders.

Sponge V2 entails a P2E racing game powered by the SPONGEV2 token. This provides a notable advantage, enabling its price to benefit from utility-driven and hype-driven demand.

The V2 token has been in a prelaunch campaign since its inception and was officially migrated on February 5 at 11pm UTC.

Those looking to buy and stake SPONGEV2 can do so using the widget on the website.

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