Over the past week, cryptocurrency traders have profited immensely from small-cap memecoins on the BNB Chain, indicating a resurgence of speculative investments driving the current market cycle.
One of the standout investors, trader “0xd0a2,” transformed an initial investment of $3,500 into $7.9 million, achieving a remarkable 2,260-fold return in just three days, as reported by the blockchain intelligence platform Lookonchain.
Another trader, “hexiecs,” escalated a $360,000 investment to over $5.5 million after backing the newly launched “4” memecoin, which skyrocketed following a post from Binance co-founder and former CEO, Changpeng Zhao.
Other players also got in on the action, including trader “brc20niubi,” who turned a $730,000 investment into $5.4 million, recording a 1,200-fold return on investment, according to Lookonchain.
This surge in trading activity followed a trade earlier in the week when the wallet “0x872” earned nearly $2 million in profits shortly after investing just $3,000 in the 4 token. The trader netted a 650-fold return after Zhao reshared a post about the token to his 8.9 million X followers on October 1.
The 4 token was created following a phishing attack on the BNB Chain, where the hacker allegedly secured only $4,000 in profit before the community turned the incident into a meme.
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Traders awaken to BNB Chain opportunities
The uptick in trader activity on the blockchain has caught the eye of industry observers, including Zhao, who termed the trend “BNB meme szn,” something he admitted was unexpected.
One significant factor driving increasing investor interest is the recognition of BNB Chain’s potential for digital asset trading, according to Marwan Kawadri, DeFi lead and head of EMEA at BNB Chain.
“BNB Chain has always excelled in DeFi, but at this moment, it is becoming the center of onchain trading,” amid record-breaking activity in active addresses and decentralized exchange (DEX) trading volumes, Kawadri stated to Cointelegraph, adding:
“What you’re witnessing with ‘BNB meme szn’ is the market realizing that BNB Chain has emerged as the principal ecosystem for trading.”
New cryptocurrency trends may spread more rapidly on the blockchain, as the “community is centered around a trading culture,” noted Kawadri.
Related: ‘Diamond hand’ investor turns $1K into $1M as BNB surpasses $1,000
The most successful traders in the industry, identified as “smart money” traders on Nansen’s blockchain intelligence platform, have also been favoring BNB-native memecoins.
The three largest cryptocurrencies acquired by smart money traders were all BNB-native tokens, according to Nansen data, which illustrates the 24-hour inflow of these tokens.
Leading up to Tuesday, more than 100,000 onchain traders had invested in the new BNB-native memecoins, with roughly 70% in profit at that time, according to data visualization platform Bubblemaps.
Among the 100,000 traders, one address yielded over $10 million, 40 achieved over $1 million, and 900 traders exceeded $100,000 in profit.
Memecoins are among the riskiest digital assets, as they lack intrinsic value and depend solely on social sentiment for traction.
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