There is a recovery in the meme coin market scene after a few months of calm.
Following the sharp bounce of Bitcoin (BTC) after last week’s scare, BONK, LADYS, and NuggetRush (NUGX) seem to be leading the way, outperforming some of the more established coins like Ethereum (ETH), and even the king of meme coins, Dogecoin (DOGE).
Why Are Meme Coins Rising?
Multiple reasons explain this welcomed leg up. Specifically, investors appear to be re-calibrating their portfolios. With crypto trending at new 2023 highs, aggressive investors are more risk-on as the broader crypto market edges higher.
Unlike BTC or DOGE, for instance, LADYS, NUGX, and BONK have relatively lower market caps. Accordingly, they are more volatile.
Beyond liquidity, investors are also exploring meme coins because they are more speculative investments and can rip higher than traditional asset classes such as stocks or bonds, whose gains depend on regulated market factors.
Meme coins are highly volatile, community-driven cryptocurrencies that involve more risk and reward than traditional investments.
Substance Over Hype
Still, even with these factors, how fast a meme coin can rise depends on what it brings to the crypto table and what excites investors. Let’s look at distinguishing features that explain the recent expansion of NUGX, LADYS, and BONK.
NuggetRush (NUGX)
NuggetRush is a meme coin on Ethereum that is planning to add utility to the meme coin industry. Central to NuggetRush is its native NUGX token.
NUGX is available for purchase in the ongoing NuggetRush presale, which has raised nearly $1 million as of mid-December 2023.
Interest in NuggetRush can be due to the project’s plans to launch a play-to-earn (P2E) game that rewards players with NFT rewards. These NFTs can be traded for others or NUGX via the internal marketplace. Some of these rare NFTs can also be redeemed for real gold.
NuggetRush’s tokenomics are also designed to incentivize participation and reward staking. NFTs can be staked for NUGX. At the same time, NUGX is deflationary, meaning its supply will reduce over time. Moreover, NUGX holders participate in governance, voting on proposals.
BONK
BONK is a meme coin on Solana.
Solana is a fourth-generation blockchain designed to compete with Ethereum. After losses in 2022, SOL recovered in 2023, reversing post-FTX losses. This expansion has directly supported Solana-based tokens, including BONK, the meme coin.
BONK is described as the “dog coin of the people”, first distributed in an airdrop in December 2022. There are over 649,000 BONK holders spread across ten chains.
So far, the token has grown to command over $930 million in market capitalization while finding integration across 114 verticals. Moreover, it has been listed in multiple exchanges, including KuCoin.
In the past 24 hours, trading data shows that BONK is up by over 40%, extending gains. At the back of expanding prices, associated trading volumes have been swelling.
LADYS
LADYS is the meme coin of the Milady NFT collection. Notably, the currency is described as the “drip currency” and a “self-organizing meme coin”.
Launching on Ethereum as an ERC-20 token, LADYS has been edging higher as interest in meme coins rises. To illustrate, at spot rates, LADYS is up 23% in the last trading day, buoyed by increasing trading volumes.
The token has been listed in multiple exchanges, including Bybit and Gate.io.
To enable trading, 94% of the total supply was added to a liquidity pool on Uniswap, and liquidity provider (LP) tokens were burned. Additionally, 1% of all LADYS were airdropped to Milady NFT and PEPE holders.
The meme coin is also community-facing, and smart contracts have been renounced. For transparency, the remaining 5% of the total supply is used for exchange listing and held in a multi-sig wallet.
Conclusion
Crypto and meme coins are volatile. Therefore, while BONK, LADYS, and NUGX rise, it is still too early to determine whether this run will be sustained. As the FOMO wave subsides, projects like NuggetRush might retain more users and be explored more by value-seeking investors due to their focus on utility over hype.
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