$STONK, the native token of StonkFun, recovered from its recent dip and rose to new highs. The token rose on a mix of regular burns and fee distribution, as well as the general market recovery.
$STONK was among the day’s top gainers, just as BTC regained the $81,000 level. The increased optimism immediately boosted the launch platform, as well as the native token. $STONK trading volumes hover around $43M daily, with more upside as the token gains wider adoption.
$STONK climbed as high as $0.37 during the early European trading hours. To date, $STONK rose more than 13,000%, with most of the rapid expansion happening in September. $STONK is still seen as capable of making new highs and shifting to a much higher market capitalization.
In comparison, the $PONS native token of the Robinhood chain launchpad traded around $0.61, down from a peak above $0.90. $PONS is still up over 6,000% in the past three months, outperforming all other altcoins and tokens.
$STONK also showed it could erase a 27% drop within days, as its trading and revenue model led to another price rally. Despite this, $STONK has the potential to remain volatile and have additional drawdowns due to whales selling.
The token heavily depends on Meteora, though some of the liquidity has also moved to Orca. So far, the StonkFun reflection token trend is mostly dependent on the Solana ecosystem.
$STONK reflects success over competing platforms
The rise of $STONK tracks the success of the StonkFun platform. The venue looks like a new source of gains for ‘trenches’ traders, combining both meme tokens and growing underlying assets.
StonkFun faced almost immediate competition, as PumpFun added similar reflection token features and pairings with other assets. Robinhood launches of reflection tokens are also on the rise through the $PONS launchpad. While StonkFun had the advantage of inheriting the Solana ecosystem trenches, the two platforms are almost evened out in revenue.
As of September 20, StonkFun announced over $1.1M in daily revenues, of which $660K was dedicated to $STONK buybacks.
All platforms are also working to boost general on-chain activity and fees, while also benefiting the Uniswap ecosystem. Most of the reflection token activity is fully decentralized and uses the infrastructure for general launches and meme trading.
StonkFun adds new pairing features
StonkFun is expanding its pairing features, combining memes with both equities and legacy crypto tokens.
In the past few days, StonkFun added pairings with BlackBerry (Nasdaq:BB), as well as one of the older meme tokens, PEPE. The platform also added pairings with AAVE and AVAX. Pairings are closely watched to ensure the underlying assets are the correct ones. Users have noted a pairing with old SLERF tokens from before their migration, raising a warning about trading defunct assets.
The current success of $STONK relies mostly on the platform’s success, rather than new ticker launches. Overall, StonkFun has already established its leading pairings, with a handful of memes tied to ZCash (ZEC), SOL, HYPE, as well as gold. For now, the large-scale stock pairings are fewer in comparison to crypto pairings.
Despite being tied to an underlying asset, StonkFun memes are still highly risky, and their low liquidity can lead to significant price fluctuations.
Additionally, the price of $STONK depends on buybacks, outside of short-term hype buying. If fees and buybacks decline, the main value proposition of $STONK breaks down. The main task of StonkFun is to retain its profitability and sustain its daily burns.
