BONK Drops 11% as Galaxy's $18.75M Transfer Sparks Selling Panic

BONK, the Solana-based memecoin, experienced an 11% decline in a 24-hour period amid heightened selling pressure, erasing earlier gains tied to a major token burn announcement. The token’s price slid from an intraday high of $0.00003763 to a closing level of $0.00003332 at press time [1], according to Coingecko data. This marked a significant reversal after initial optimism driven by the BONK team’s Thursday announcement of a 500 billion token burn aimed at reducing supply [1].

The downward momentum accelerated following a large-scale transfer of $18.75 million worth of BONK to centralized exchanges by a wallet linked to Galaxy Digital. This movement, coupled with Galaxy’s prior $11.4 million transfer to Binance, triggered panic among holders, resulting in a 9% price drop within an hour [1]. Between July 21 and July 22, BONK oscillated within an 8% range but ended 4% lower at $0.00003494, with over 100 billion tokens traded as profit-taking pressure dampened short-term gains [1].

Derivative markets reflected waning activity, with total volume declining 34.17% to $583.41 million and open interest dropping 0.65% to $59.6 million, suggesting traders were unwinding positions or adopting a cautious stance [1]. Despite this, the 24-hour long/short ratio across major exchanges remained nearly balanced at 0.9826. Binance data indicated a slightly bearish sentiment among accounts, while OKX showed a marginally bullish ratio of 1.07 [1]. Liquidation data highlighted shifting dynamics: $1.21 million in total liquidations over 24 hours included $1.08 million in long positions, with bulls bearing the brunt during the final leg of the downturn [1].

The 12-hour window reinforced this trend, with $227,110 in liquidations split between $98,960 in longs and $128,150 in shorts [1]. This volatility underscores the token’s susceptibility to large institutional movements and algorithmic trading pressures. While the token burn announcement aimed to bolster investor confidence, the subsequent actions by Galaxy Digital and other entities exposed the fragility of its price structure.

The broader Solana ecosystem saw BONK’s launchpad, LetsBonk, dominate revenues with $1.57 million, though this segment is excluded from the primary analysis to focus on direct price and trading dynamics. The token’s trading volume declined 28.52% in the last day, reflecting reduced liquidity and heightened caution among market participants [1].

Source: [1] [BONK endures 11% dip as selling pressure overwhelmes market] https://coinmarketcap.com/community/articles/6883bf1144d5ab3d177b27ac/