Investor interest in Bonk has been reignited as Bitcoin remains stable above $68,000, leading to a broader rally in the meme coin market. Bonk (BONK) has experienced a 5.8% increase in the past day and a 36% increase in the last 30 days, with a market cap of $1.71 billion at the current moment. The daily trading volume for the meme coin has also risen by 76% in the past day, totaling over $285 million.
In contrast, Bitcoin (BTC) has been trading relatively flat, remaining above $68,000. The global cryptocurrency market has slowly recovered from the slump observed two weeks ago, with the market cap rising from $2.2 trillion on October 11 to $2.48 trillion.
It is common for altcoins, including meme coins, to rally when Bitcoin stabilizes. This is because traders often shift their focus to smaller, higher-risk assets in the hopes of achieving significant short-term gains while Bitcoin remains steady.
Bonk’s rally has been further strengthened by the news of its partnership with Osprey Funds, a New York-based firm known for facilitating the entry of crypto assets into traditional markets. The collaboration aims to launch a BONK exchange-traded product called Osprey BONK Trust. This move is intended to lower barriers for traditional and institutional investors to access cryptocurrencies. Osprey Funds has already started accepting investments from its initial group of qualified investors, and once this phase is complete, the trust will apply for the listing of the BONK ETP on secondary markets.
The sentiment among traders regarding BONK has been bullish, as shown by the community sentiment tracker on CoinMarketCap. BONK has gained significant interest, becoming a trending search term on Google on October 21. Independent trader Unipics has observed that Bonk appears ready to break out of a large triangle pattern it has been consolidating since March 2024. A breakout from this pattern is typically seen as a strong indication of a bullish price reversal in technical analysis.
Technical indicators on the 1-day chart for Bonk also support the bullish outlook. The current price of BONK is near its Upper Bollinger Band, and both lines of the Moving Average Convergence Divergence (MACD) indicator are above zero, suggesting a continuation of the bullish momentum and further price gains in the short term.
According to CoinGecko, memecoins experienced significant gains on October 21, with their total market cap increasing by 1.7% in the past 24 hours, reaching over $65 billion.
Some analysts believe that this is just the beginning of a larger trend. Crypto analyst Murad Mahmudov predicts that we are entering a “meme coin supercycle,” with the market expected to reach its peak by the end of 2025.