Solana News Today: BONK Plunges 11% as Galaxy Digital Triggers Sell-Off with $18.7M Transfer

BONK, a memecoin on the Solana blockchain, suffered an 11% price drop over 24 hours as selling pressure intensified, wiping out earlier gains from a token burn announcement. The token’s price fell from an intraday high of $0.00003763 to close the week at $0.00003332, per Coingecko data [1]. The decline followed a strategic move by the BONK team, which announced a 500 billion token burn on X to reduce supply and boost investor confidence. However, the optimistic sentiment was short-lived after a wallet linked to Galaxy Digital transferred $18.75 million worth of BONK to centralized exchanges, triggering panic among holders and a 9% pullback within an hour. Galaxy Digital had previously moved $11.4 million of BONK to Binance after accumulating a $30 million position, further exacerbating market uncertainty. Between July 21 and 22, BONK traded in an 8% range but ended 4% lower at $0.00003494, with over 100 billion tokens traded during the session [2].

Derivative market data revealed mixed signals. Coinglass reported a 34.17% drop in BONK’s total derivative volume to $583.41 million, alongside a 0.65% decline in open interest to $59.6 million, indicating traders unwinding positions or adopting a wait-and-see approach [3]. Despite the downturn, the 24-hour long/short ratio on major exchanges stood at 0.9826, suggesting nearly balanced sentiment. However, Binance’s account-based ratio tilted slightly bearish, while OKX showed a more bullish stance of 1.07. Liquidation data highlighted significant volatility: $1.21 million in total liquidations over 24 hours, with $1.08 million from long positions and $130,660 from shorts. The final downward price movement disproportionately impacted longs, erasing gains for many bulls [4].

BONK’s struggles contrasted with broader Solana launchpad performance, where the token-backed platform LetsBonk dominated earnings. On July 24, LetsBonk generated $1.57 million in revenue, nearly four times Pump.fun’s $280,864, and accounted for nearly 70% of Solana’s $2.27 million launchpad revenue. Raydium contributed $399,104, while smaller platforms like Moonshot and Meteora earned under $3,000 [5]. Despite a 26% drop in new token graduations to 208 on July 24 from 282 a week prior, LetsBonk retained a 51% share of Solana’s launchpad activity, underscoring BONK’s growing influence in the ecosystem.

The sell-off highlighted inherent risks in memecoin trading, where price movements often hinge on speculative activity rather than fundamental value. Large institutional transfers, such as Galaxy Digital’s moves, can destabilize liquidity in lower-cap assets, leading to abrupt reversals. Analysts noted that BONK’s volatility was amplified by its lack of utility-driven use cases, making it susceptible to sentiment shifts. While the token’s association with the Dogecoin community initially attracted attention, the recent selloff signals waning confidence among investors seeking tangible innovation.

The event underscores broader challenges in the crypto market, where speculative assets face heightened scrutiny amid macroeconomic uncertainty. Without clear use cases or technological advancements, memecoins remain vulnerable to cycles of hype and correction. However, some observers view the dip as a potential buying opportunity for long-term holders if selling pressure subsides and the token stabilizes.

Source:

[1] [BONK Tanks 11% Amid Exchange Transfers] [https://www.cryptopolitan.com/bonk-tanks-11-amid-exchange-transfers/]

[2] [title1] [https://coinmarketcap.com/community/articles/6883bf1144d5ab3d177b27ac/]

[3] [Derivative Market Data for BONK] [https://e.thsi.cn/img/d2c7ea02b2684dcc]

[4] [Liquidation Charts for BONK] [https://e.thsi.cn/img/d2c7ea02b2684dcc]

[5] [Solana Launchpad Revenue Report] [https://e.thsi.cn/img/1917666f6548d9c]