Cryptocurrency traders made millions of dollars on BNB chain small-cap memecoin last week, indicating a new wave of speculative funds that will stimulate the current market cycle.
According to blockchain intelligence platform Lookonchain, among the most profitable investors, trader 0xd0a2, which converted its initial investment of $3,500 to $7.9 million, earning 2,260 times more profitable in three days.
Trader “hexiecs” has increased its $360,000 investment to over $5.5 million by investing in the recently launched “4” meme coin. Memecoin has now started drawing parabolic after an X-post from Binance co-founder and former CEO Changpeng Zhao.
Other speculators, including trader Brc20niubi, also jumped at the token, turning their $730,000 investment to $5.4 million, and recording a 1,200x return on investment.
The activity followed an early week trading in which wallet “0x872” invested just $3,000 in token 4, earning nearly $2 million within hours. The trader achieved 650x profit after Zhao re-shared a token post with 8.9 million X-followers on October 1st.
4 Tokens occurred after a phishing attack on the BNB chain. Hackers reportedly earned only $4,000 in profits before the community memesed the event.
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Traders are awakened to the potential of BNB chains
The growing activity of traders on the blockchain has attracted the attention of industry watchers, including Zhao, who called the phenomenon “BNB meme zone” and described it as something he “didn’t expect at all.”
One of the main factors that has led to the growing interest among investors is the recognition of the potential for digital asset trading for BNB chains, according to Marwan Kawadori, head of DeFi and EMEA.
“BNB chains have always been strong with DeFi, but are now becoming the core of on-chain trading,” Kawadori told Cointelegraph, adding that amid records of active addresses and distributed exchange (DEX) trading volume.
“What we see in ‘BNB meme szn’ is that the market is awakened to the fact that BNB chains have become a major ecosystem of trading.”
“Communities are built around a trading culture,” Kawadori said, so the new cryptocurrency trend could gain momentum faster on the blockchain.
Related: BNB surpasses $1,000, and “Diamond Hand” investors turn $1,000 to $1 million
The most successful traders in the industry, tracked as “smart money” traders on Nansen’s blockchain intelligence platform, are also prioritizing BNB native memecoin.
Nansen data shows that all three major cryptocurrencies purchased by smart money traders are BNB native tokens, indicating a 24-hour influx of these tokens.
By Tuesday, more than 100,000 on-chain traders had purchased new BNB native meme coins, earning about 70% profits at that time, according to Bubble Map, a blockchain data visualization platform.
Of the 100,000 traders, one address made more than $10 million in profits, 40 traders made more than $1 million in profits, and 900 traders made more than $100,000 in profits.
Memecoin is some of the most risky digital assets. Because these tokens have no intrinsic value, they rely solely on social emotions to gain traction.
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