BONK falls, Pump.fun holds fort – Can Bonk_fun claw back control?

Key Takeaways

BONK lost its launchpad dominance as Pump.fun reasserted its control. Will bonk_fun’s new Points Tab strategy recover its volume share?

After an 80% surge in July, BONK’s hype is finally cooling off. 

The memecoin is down 13% over the month, losing its $2 trillion market cap. In July, it spiked to $0.000040, bouncing back to its Q1 levels. With its RSI topping out, it created a classic reset setup.

However, at a price level of $0.000020, BONK gave up 50% of its value in under a month. In fact, it hit its fourth lower low, keeping the market structure bearish with no meaningful accumulation and invalidating the reset thesis.

Source: TradingView (BONK/USDT)

To put it simply, BONK’s monthly dip doesn’t look like a “buy the dip” setup. Instead, it could allude to waning investor conviction, despite the world’s largest memecoin Dogecoin [DOGE] up by 4% in a month. 

This means that BONK’s pullback isn’t just a technical blip, but a shift in sentiment. Put simply, FOMO is turning into profit-taking as holders dump into thin bullish pressure. 

However, what’s driving this shift? Well, according to AMBCrypto, it looks like devs are aware and pursuing a strategic fix to address the liquidity drain.

BONK slides as Pump.fun reclaims dominance

After a year of BONK_fun dominance, Pump.fun is clawing back control.

On 6 August, Pump.fun led on the 24-hour trading volume front, hitting $100.7 million compared to BONK_fun’s $70.6 million. In fact, on the same day, Pump.fun launched 16,000 tokens, surpassing BONK_fun’s 11,400.

Additionally, a $33 million PUMP buyback sparked a 20% token pop. The result? Pump.fun now dominates 90% of Solana’s memecoin launchpad volume. On the contrary, Bonk_fun slipped to fourth with just 0.74% market share.

Source: SolanaFloor

Traders are rotating back to Pump.fun for token drops, snapping Bonk_fun’s long streak. That streak had powered BONK’s 80% July spike to $0.000040.

Alas, the market structure is now shifting. Bonk_fun is rolling out a Points Tab to boost trader engagement and reclaim volume, rewarding token drops along the way.

Clearly, Bonk_fun is trying to push back on Pump.fun. However, Pump.fun is still hogging liquidity. Hence, while BONK’s Points Tab may be promising, it hasn’t shifted market structure yet.