- BONK’s trading volume fell by more than 26.68% in the last 24 hours, leading to hike in price volatility
- Active addresses and market cap remain stable, indicating consistent user engagement
BONK, a memecoin on the Solana blockchain, has seen a significant drop in trading activity lately. In the last 24 hours alone, its trading volume fell about 26% to around $69.46 million, according to CoinMarketCap.
However, even though BONK’s trading volume dropped, its price didn’t change much. At press time, it was valued at $0.00001083, with the altcoin’s value of $847 million placing it among the market’s top-100 cryptos. Simply put, despite low trading activity, BONK is still holding strong across the market.
When trading volume drops a lot, prices can swing more. With fewer trades happening, each one affects the price more, making it jump to the upside or downside faster. This can be risky for investors because with less buying and selling, prices can change in unexpected ways. Hence, it’s important to be careful during times like this.
In the aforementioned case, even though trading volume is down, the number of people using BONK hasn’t changed much. This means loyal users are still active, helping keep the token steady even as the price continues to fluctuate.
BONK’s fundamental outlook
Regardless of the altcoin’s declining volume, it is still worth looking at BONK’s other major metrics such as active addresses and new addresses. Especially to get a full picture of how the asset is performing on-chain these days.
Source: Glassnode
According to Glasssnode, BONK’s active addresses have been on quite an interesting trajectory in recent months. In fact, metrics for the same have so far faced a consistent plunge, dropping from over 54,000 addresses in early February to below 15,000 active addresses at press time.
This decline in active addresses suggested the the asset is seeing less activity, especially from investors.
Interestingly, Glassnode also revealed that the number of new non-zero addresses, which indicated new participants holding BONK, climbed steadily. Worth pointing out, however, that this uptick came after an initial decline from December.
Source: Glassnode
This surge in new addresses is a sign that more investors are joining the BONK community, something that helps balance out the drop in trading.
A growing number of new users is a good sign, showing that more people are interested in the token and using it.
