BONK Drops 7% But Weekly Gains Surge 51%

BONK, a memecoin, experienced a 7% drop from its previous highs, which initially raised concerns among traders. However, the overall picture remains bullish, with weekly gains exceeding 50%. This suggests that the recent dip may be a temporary pause rather than a reversal of the upward trend.

Despite the short-term decline, the futures market for BONK indicates continued investor interest. Open interest (OI) stood at $54.7 million, significantly higher than levels from early July and more than double what it was just two weeks ago. This surge in OI, coupled with a steep climb in both price and open interest beginning around the 4th of July, reflects renewed risk appetite among traders. This spike in interest coincided with improving sentiment in the broader crypto market and BONK’s recent addition to Grayscale’s tracking list, which some interpret as early validation from institutional investors.

Funding Rates for BONK have surged to 0.0329, indicating that long traders are paying a premium to maintain their positions. While this suggests continued bullish sentiment, it also signals overheated conditions that could lead to short-term volatility. Meanwhile, Total Derivatives Volume dropped by over 41% to $929.37 million in the past 24 hours, hinting at some exhaustion among intraday traders. This mixed picture shows that while the momentum is still alive, it is becoming more expensive to ride the wave.

BONK has led the weekly gains among memecoins, surging over 51% in seven days. This performance outpaces heavyweights like Dogecoin and Shiba Inu, as well as newer entrants like Pudgy Penguins and Official Trump tokens, which posted over 50% and 4.5% weekly gains respectively. Despite the daily dip, BONK’s chart reflects a steep and sustained uptrend, indicating that it continues to command the narrative. With capital rotating back into high-risk assets, memecoins are once again proving to be early beneficiaries of sentiment shifts, particularly those with strong community backing and fresh catalysts.