Traders in the cryptocurrency market have capitalized on small-cap memecoins on the BNB Chain, raking in millions over the past week, indicating a fresh influx of speculative investment driving the current market cycle.
Notably, trader “0xd0a2” transformed an initial investment of $3,500 into $7.9 million, achieving a staggering 2,260-fold return in just three days, as reported by blockchain intelligence platform Lookonchain.
Another trader, “hexiecs,” turned a $360,000 investment into over $5.5 million by investing in the newly launched “4” memecoin, which surged after a post from Binance co-founder and former CEO, Changpeng Zhao.
Further participation came from trader “brc20niubi,” who transformed a $730,000 investment into $5.4 million, achieving a 1,200-fold return on investment, according to Lookonchain.
This surge in activity followed an earlier trade by wallet “0x872,” which netted nearly $2 million in profits within hours after a mere $3,000 investment in the 4 token. The trader saw a 650-fold return after Zhao rescheduled a post about the token to his 8.9 million X followers on October 1.
The 4 token emerged following a phishing attack on the BNB Chain, where the hacker reportedly 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 increased trader activity on the blockchain has drawn attention from industry observers, including Zhao, who termed it “BNB meme szn,” an occurrence he said he “didn’t foresee.”
A key factor driving this growing interest is the recognition of BNB Chain’s potential for trading digital assets, as noted by Marwan Kawadri, DeFi lead and head of EMEA at BNB Chain.
“BNB Chain has always excelled in DeFi, but it’s now establishing itself as the core of onchain trading,” with record numbers in active addresses and decentralized exchange (DEX) trading volumes, Kawadri shared with Cointelegraph, adding:
“What you’re witnessing with ‘BNB meme szn’ is the market waking up to the reality that BNB Chain has become the premier ecosystem for trading.”
New cryptocurrency trends might gain traction more swiftly on this blockchain, as the “community is centered around trading culture,” Kawadri remarked.
Related: ‘Diamond hand’ investor turns $1K into $1M as BNB crosses $1,000
The industry’s most successful traders, identified as “smart money” on Nansen’s blockchain intelligence platform, have notably been focusing on BNB-native memecoins.
The three largest cryptocurrencies purchased by smart money traders were all BNB native tokens, as per Nansen data, which illustrates the 24-hour inflow of these tokens.
By Tuesday, over 100,000 onchain traders had engaged with the new BNB-native memecoins, with around 70% seeing profits at that moment, according to blockchain data visualization platform Bubblemaps.
Among these traders, one address earned over $10 million, 40 surpassed $1 million, and 900 traders generated over $100,000 in profit.
Memecoins are categorized among the most speculative digital assets. Lacking intrinsic value, these tokens depend entirely on social sentiment for their growth.
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