A renewed enthusiasm for memecoins within the Binance blockchain has unfolded, sparking remarkable gains in token values. The memecoin landscape dramatically shifted after posts from Binance co-founder and former CEO Changpeng Zhao catalyzed notable surges for tokens such as GIGGLE and 4. Consequently, decentralized exchange platforms experienced altered trend lists with a spike in trading volumes and swift price increases. Notably, GIGGLE achieved a 33.5% rise within a day, reaching an apex value of $140 and experiencing an incredible weekly increase of 717%. The 4 token also marked impressive gains, with daily appreciation of 19% and a weekly growth of 349%.
What Triggered the Market Rally?
CoinMarketCap data corroborates GIGGLE coin’s ascent, highlighting its donation scheme powered by trading fees. Accumulated through the Giggle Academy initiative, these fees are turned into BNB, aiding educational projects. Additionally, they provided an influx of $5.5 million when the price remained above $1,300, thereby easing the selling pressure on BNB. Sustaining current momentum necessitates approximately 1,000 transactions daily.
Zhao’s mention of ‘4’ on social media amplified interest from both retail investors and large-scale traders. This memecoin briefly saw its market cap exceed $200 million, and its 24-hour trading volume approached $290 million.
How Does Liquidity Movement Influence the Market?
The reallocation of liquidity within the BNB Chain has become a focal point. Some prominent wallets have diverted profits from ASTER token into the lower capitalization 4 token, demonstrating this trend.
On October 7, DeFiLlama reported that the DEX volume on BNB Chain had surged to $6.05 billion. PancakeSwap contributed significantly, with $4.29 billion alone. Within the BNB ecosystem, altcoins such as PAUL and Binance Life saw increases of up to 2,246% and 415% respectively, while PUP and SZN coins skyrocketed by 5,600%. Participation swelled to over 100,000 users, with 70% realizing profits.
Profitability reports from Lookonchain revealed that certain addresses accrued millions. A particular wallet made over $10 million in 4 token transactions, whereas GIGGLE token transactions yielded revenues from $200,000 to $700,000. Yet, debates concerning long-term viability persist.
“The future momentum relies heavily on the effectiveness of donation-based fees and maintaining transaction flow,” said industry observers.
While excitement surrounds these memecoins, their enduring momentum is contingent on strategic operational factors. The role of trading fees redistributing wealth for educational purposes and the requisite transactional frequency stand as pivotal elements guiding the direction of these digital currencies. Despite the challenges, the unprecedented interest in BNB memecoins suggests a shifting dynamic in cryptocurrency trends.
