BONK endures 11% dip as selling pressure overwhelms market

Solana-based memecoin Bonk Inu (BONK) tanked by 11% over a volatile 24-hour trading period, erasing earlier gains triggered by a major token burn announcement. The token’s price dropped from an intraday high of $0.00003185 and $0.00003763, ending the week trading in the red.

BONK’s value had gone up against the backdrop of its team’s announcement on X Thursday, which revealed a 500 billion token burn to reduce its supply and positively impact investor sentiment. 

However, the bullish momentum was abruptly halted when a wallet linked to Galaxy Digital transferred approximately $18.75 million worth of BONK to centralized exchanges. The large-scale movement caused a panic among holders, leading to a 9% pullback in under an hour.

Galaxy Digital has impacted the token’s price throughout this business week. The firm had initially transferred $11.4 million worth of BONK to Binance after it accumulated a $30 million position in the token.

Between July 21 and July 22, BONK traded within an 8% range, oscillating between $0.0000328 and $0.0000358. The token eventually settled 4% lower at $0.00003494. A brief spike to the upper end of the range caused a short rally, though the upward momentum faded when investors succumbed to profit-taking pressure, and over 100 billion BONK tokens exchanged hands.

According to Coingecko data at press time, BONK is trading at $$0.00003332, and its trading volume has dropped by 28.52% in the last day.

Long/short BONK traders balanced, derivatives activity shows

According to Coinglass, BONK’s total volume across derivative markets dropped significantly, falling by 34.17% to $583.41 million. Open interest also declined slightly by 0.65%, landing at $59.6 million, suggesting traders may be unwinding positions or waiting on the sidelines.

Despite the downturn in volume, the 24-hour long/short ratio stood at 0.9826 in major exchanges, indicating nearly balanced sentiment between bulls and bears. On Binance, the top trader long/short ratio by accounts was slightly bearish, while OKX reported a slightly more bullish ratio of 1.07, indicating traders were leaning long on BONK.

In the liquidation charts, short positions bore the brunt early in the day but sentiment later reversed. Within the last 24 hours, BONK saw a total of $1.21 million in liquidations. Of that figure, $1.08 million were long positions, while $130,660 were short. Most trader wipeouts were experienced by bulls during the final downward leg of the session. 

The same trend appeared across shorter timeframes, with 12-hour data showing $227,110 in liquidations, $98,960 in longs and $128,150 in shorts.

LetsBonk leads Solana launchpad revenues 

In the broader Solana ecosystem data, yesterday’s launchpad revenues were led by BONK-backed LetsBonk with $1.57 million, nearly quadrupling the amount generated by Pump.fun, which recorded $280,864. Raydium was the second-highest contributor with $399,104 in earnings.

Other smaller contributors such as Moonshot, Meteora, and cook.meme registered earnings below $3,000, with several reporting revenue under $1,000.

The overall revenue from Solana launchpads clocked $2.27 million on Thursday, with LetsBonk alone accounting for nearly 70% of the total market share. Pump.fun’s earnings represented just over 12%, as the BONK memecoin launchpad continues eating into the platform’s market activity.

Just about a week ago, LetsBonk graduated 282 tokens, surpassing its previous single-day record of 234 by more than 20%. Although the number has dropped by 26% to 208 tokens as of July 24, the launchpad still leads Pump.fun’s 54 tokens by over 200%, and has taken up 51% of all graduated tokens on Solana.

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