Bonk (BONK) Spikes 12% to Rank as the Most Gained Cryptocurrency in the Last 24 Hours
- WBOYOriginal
- 2024-07-16 21:07:53523browse
Leading Solana [SOL]-based meme coin Bonk [BONK] ranked as the cryptocurrency asset with the most gains in the past 24 hours.
Solana (SOL)-based meme coin Bonk (BONK) has seen a surge in value over the past 24 hours, making it the cryptocurrency asset with the most gains. At press time, BONK was trading at $0.000026, up by 12% over that period.
According to data from CoinMarketCap, this price surge was accompanied by a corresponding increase in daily trading volume. The token’s daily trading volume amounted to $522 million, showing an uptick of 67%.
BONK Activity Spikes in Derivatives Market
The double-digit rally in BONK’s price also resulted in a surge in trading activity in its derivatives market.
Trading volume in the BONK derivatives market totaled $206 million at press time, showing an increase of 77% over a 24-hour period, according to data from Coinglass.
Furthermore, the memecoin’s Open Interest also spiked by 24%, the data provider noted.
Open Interest measures the total number of outstanding derivative contracts, such as Options or Futures, that have not been settled. When it increases, it means that more traders are entering into new positions.
In the context of a rising asset price, a strong increase in both Open Interest and price is considered a bullish signal. It often confirms the strength and continuation of the uptrend.
However, traders in the BONK Futures market appeared to be pessimistic about the continuation of the price rally.
This is evident from the readings of the Funding Rate for BONK Futures across cryptocurrency exchanges, which was showing a negative rate (-0.02%) at press time. This indicated that a majority of BONK Futures traders were demanding short positions.
Funding rates are applied in perpetual futures contracts to keep an asset’s contract price closely aligned with its spot price.
When an asset’s Funding Rate is negative, more traders are buying the asset, expecting a price decline, than those buying and hoping for a rally.
BONK Futures traders appeared to be betting on a decrease in the meme coin’s price by opening short positions. This is in contrast to traders in the spot market, who were displaying a bullish bias toward BONK.
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