BONK 500 Billion Token Burn May Spur 46% Price Rally as Bullish Sentiment Rises

BONK executed a 500 billion token burn on July 24, 2025, as part of its deflationary strategy to reduce supply and potentially drive price appreciation. Funded by 50% of revenue from its letsBonk (BonkFun) launchpad, the burn removed $16.7 million worth of tokens from circulation, aligning with a 50% buy/burn revenue allocation target highlighted by COINOTAG analysts [1]. This move follows a 158% price surge in July and aims to strengthen BONK’s market position by creating upward pressure through increased scarcity [2]. The project has reallocated 1% of BonkFun’s revenue from marketing to buybacks, signaling a strategic shift to prioritize supply reduction over promotional spending [3].

Market sentiment remains cautiously optimistic, with Binance data showing leveraged traders increasing bullish positions from 56% to 60% within 24 hours [4]. BONK’s price has consolidated around the 1.618 Fibonacci retracement level ($0.000036), a critical technical support area. If bulls defend this level, COINOTAG experts suggest a potential 46% rally to $0.000052 could follow [5]. However, failure to hold this level risks a pullback to $0.000025 or May’s high, presenting opportunities for spot traders [6]. Broader market conditions, including anticipated Federal Reserve rate cuts in September, will likely influence BONK’s trajectory [7].

The deflationary approach mirrors strategies employed by other memecoins, where supply reduction is used to counterbalance speculative volatility. By prioritizing buybacks over marketing, BONK’s team aims to balance short-term market confidence with long-term value creation. This approach could resonate in a sector where sentiment-driven rallies often outperform traditional fundamentals [8].

Key technical indicators and market behavior suggest further consolidation is probable in the near term. CoinGlass data highlights the importance of monitoring Fibonacci levels and volume patterns to gauge the sustainability of recent gains [9]. Analysts caution that while the token burn provides a structural tailwind, its success hinges on sustained demand amid broader crypto market fluctuations [10].

The 500 billion token burn represents a significant milestone in BONK’s roadmap, reflecting confidence in its ability to execute a deflationary narrative. If market participants continue to interpret this as a positive signal, the memecoin could see renewed institutional and retail interest. However, traders are advised to remain vigilant about liquidity dynamics and macroeconomic factors that could disrupt the current bullish momentum.

Source: [1][2][3][4][5][6][7][8][9][10] [title] BONK Token Burn and Deflationary Strategy May Support Further Gains if Market Sentiment Remains Positive [url] https://en.coinotag.com/bonk-token-burn-and-deflationary-strategy-may-support-further-gains-if-market-sentiment-remains-positive/