The market cap of Solana meme coin Bonk (BONK) has dropped by $1.8 billion within the last 30 days. This drawdown came amid the token 34.11% price decrease.

For some, the decline provides a good buying opportunity that the market has not seen in a while. However, this on-chain analysis suggests that accumulating BONK at the current price could be a risky decision.

Bonk Loses Huge Gains to the Market

Market cap is calculated as the product of a cryptocurrency’s circulating supply and its price. On November 20, Bonk’s market cap was $4.35 billion. The meme coin rallied to this value as its price joined the broader market rally to reach $0.000058.

As of this writing, the market cap has dropped to $2.55 billion, indicating that it has shed $1.80 billion from its peak in November. This decline was due to BONK’s price fall from $0.000058 to $0.000034.

The drop could also be attributed to the broader invalidation of the altcoin season, which has also affected the price of several meme coins. Should the market condition fail to improve, BONK might also struggle to recoup the gains it has lost.

Another metric hinting at further declines for BONK is the Weighted Sentiment, which combines social volume with the tone of online discussions about a cryptocurrency.

When the metric is negative, it indicates dominance of bearish conversations across social media platforms. Conversely, a positive metric suggests a higher volume of bullish commentary.

Data from Santiment shows that the Solana meme coin has remained in the negative region since November 22. This persistent bearish sentiment suggests the meme coin’s value may continue to drop under current conditions.