Bonk (CRYPTO: BONK) is one of the meme tokens that has clearly caught the attention of investors. This SolanaThe Meme-based coin project saw another impressive daily surge, rising 20.1% over the past 24 hours as of 2 p.m. ET to become the 30th most valuable. cryptocurrency by market capitalization today.

A significant portion of this move can be tied to momentum-driven moves among a range of other meme coins, most of which are skyrocketing during today’s session. A mix of exuberance following Donald Trump’s re-election and new prospects of a much more favorable regulatory landscape for crypto in general has many investors betting that this market-wide rally can continue. And in order to capture as much upside potential as possible, many speculators are turning to some of the more volatile tokens, with Bonk a clear beneficiary.

That said, there is another key factor that I believe is worth investigating today as a key driver of this project’s impressive evolution. Here’s what I think investors may want to pay close attention to from Bonk as the end of the year approaches.

Bonk team targets deflationary stocks

Unlike many other top meme tokens, Bonk is a supply-capped token, meaning there is some underlying inflation with its token (a certain number of tokens are in circulation, and d (more will be added over time). But as bonk approaches its maximum supply cap, various measures will need to be put in place to ensure token issuance slows down.

With the current total supply of Bonk tokens standing at approximately 97.2 trillion and a maximum supply cap of 97.21 trillion, there is really no more room for new tokens to be issued. So, expectations that Bonk’s team will introduce a series of deflationary measures to burn up to 1 trillion tokens by the end of the year are sparking discussions about whether this project could actually become deflationary.

If this is the case and the total number of Bonk tokens declines, existing investors will benefit disproportionately from future increases in market capitalization. Unlike other tokens that must see buying pressure consume all newly issued tokens first in order to maintain a price level, Bonk’s valuation growth could lead to even higher price gains, fueling a increased bullish speculation on this token.

What does this mean for investors?

Bonk will likely continue to benefit from the ongoing hype cycle in the crypto sector, but this is a project that also appears to have fundamental support behind its token that is worth noting. I remain skeptical of most meme tokens from a fundamental standpoint, but I like that Bonk appears to have reached its maximum supply cap, and the potential headwinds from issuing new tokens do not aren’t something investors seem to have to worry about at this point. time.

Additionally, given that Bonk is built on the Solana blockchain, where a significant portion of on-chain activity takes place, there is reason to believe that from a market share perspective, Bonk could have length ahead of its peers.

We’ll have to see how the meme coin market develops over the next year, but there are certainly reasons why investors are increasingly bullish on this project right now.

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Chris MacDonald has positions in Solana. The Motley Fool posts and recommends Solana. The Motley Fool has a disclosure policy.